Evaluating the Performance of Crop Insurance Schemes in Wardha District: An Empirical Analysis

Abstract

This paper assesses the effectiveness of crop insurance programs realized in Wardha District in the state of Maharashtra between the year 2011 and 2021 in terms of reach, effectiveness, and ability to improve the financial stability of farmers. In the study, several important schemes like the National Agricultural Insurance Scheme (NAIS), the Modified National Agricultural Insurance Scheme (MNAIS), and Pradhan Mantri Fasal Bima Yojana (PMFBY) are analyzed based on their coverage, settlement rate of claims, and frequency in which farmers joined the schemes over the ten-year period. Through a mixed method approach, secondary data in the form of government reports, agricultural department records and insurance agencies were supplemented with primary survey data that was conducted with a representative sample of farmers in the entire district. It has been found that since the introduction of PMFBY, there have been major inroads in insurance coverage, but issues pertaining to timely settlements of claims, awareness levels and affordability of premiums remain. The statistical evidence supports the argument that there is a positive link between the participation in the insurance program and the resilience of the farmers in case of crop loss; however, the improvements in operation that would aim to increase transparency and accessibility cannot be overlooked. The research takes a stance by concluding that crop insurance plans have also played a role in the risk-elimination of the agriculture industry in Wardha; however, it still has yet to realize its full potential because of structural and execution constraints. Suggestions to fix the problems include simplifying the procedures to register the claim, running more awareness campaigns, and incorporating technology-based monitoring tools to enhance the issuing efficiency and the trust of the farmers.