Economic Analysis of Crop Insurance: A Critical Review

Abstract

The paper examines the economic analysis of crop insurance. Crop insurance cushions the shock of crop loss by assuring farmers protection against natural hazards beyond their control. The Central Government and the State Governments in India have constituted in recent years several crop insurance schemes. From the above reviews, the studies demonstrate the informal method used by farmers in handling risk, effectiveness Government policy and crop insurance. Besides, it is essential to evaluate the performance of crop insurance scheme in India and point out problems in its implementation. Given this gap, there is a need for studying the issues related to crop insurance. Since the agriculture activity is uncertain, the problem faced by the farmers in India is continuous for long periods. Thus, it is important for the researchers to analyse the issues related to crop insurance thereby for improving the crop insurance for securing the agrarian livelihood in India.