Agriculture production is not guaranteed due to natural calamities such as floods, droughts, cyclones, etc. These uncertain environmental conditions create major challenges for farmers and directly affect crop yield and farm income. The risk-bearing capacity of small farmers is limited, which makes farming more vulnerable to financial losses.
This study investigates the awareness and perception of farmers towards crop insurance in Karimnagar district of Telangana state. The study focuses on understanding how farmers view crop insurance, the level of awareness they have regarding available insurance schemes, and the challenges they face while adopting them.
To minimize risk and uncertainty in agriculture production, the Government of India as well as state governments have launched several schemes such as the National Agriculture Insurance Scheme and Weather-Based Crop Insurance Scheme. These schemes are designed to provide financial support to farmers during crop failure and reduce the economic burden caused by natural disasters.
A questionnaire was designed to collect data and examine the perception of farmers regarding crop insurance. The findings show that farmers under tenancy are not ready to take crop insurance because they are already paying lease charges. Some farmers are also not willing to take up crop insurance due to the high premium rates. It is further observed that farmers having fewer acres of land feel that crop insurance does not provide sufficient benefit to them.
The concluding remarks of the study suggest that insurance agencies should take a step forward to educate farmers about crop insurance benefits and its uses. Creating awareness among farmers, reducing premium rates, and simplifying claim settlement procedures can increase farmer participation in insurance schemes and improve the effectiveness of government support programs.
Keywords: Crop Insurance, Agriculture Production, Perception of Farmers, Insurance Agencies, Government Schemes.
