Agriculture is the backbone of the Indian economy, where the production process in agriculture is entirely different from other industries. Agriculture in India plays a vital role in economic growth and employment generation, but it is highly dependent on natural conditions and seasonal changes.
Agriculture in India faces a high level of risk and uncertainty due to inconsistent weather conditions. Agricultural production is not guaranteed because of natural calamities such as floods, droughts, cyclones, etc. These uncertainties directly affect crop yield and farmer income. The risk-bearing capacity of small farmers is limited, which makes crop insurance an important support system for their protection and financial security.
This study investigates the awareness and perception of farmers towards crop insurance in Karimnagar district of Telangana state. To minimize risk and uncertainty in agricultural production, the Government of India and state governments have introduced several schemes such as the National Agriculture Insurance Scheme and Weather-Based Crop Insurance Scheme. These schemes are intended to provide support to farmers during crop loss and encourage agricultural sustainability.
A questionnaire was designed to collect the data and understand the perception of farmers regarding crop insurance. The study projects that farmers under tenancy are not ready to take crop insurance, as they are already paying lease charges. Some of them are also not willing to take crop insurance due to the high rate of premiums. It is also observed that farmers having fewer acres of land feel that crop insurance does not provide enough benefit to them.
The concluding remarks of the article suggest that insurance agencies should take a step forward in educating farmers about crop insurance benefits, its uses, and importance. In addition, reducing premium rates and simplifying claim settlement procedures can increase farmers’ participation in crop insurance schemes and improve awareness among rural communities.
Keywords: Crop Insurance, Agriculture Production, Perception of Farmers, Insurance Agencies, Government Schemes.
