Abstract

In India, more than half the population continues to be dependent on agriculture, and about 67% of the all cultivators are small or marginal farmers who own less than one hectare of land. Further, as in many developing countries, agriculture is highly susceptible to fluctuations in weather, especially rainfall, with nearly two-thirds of cultivated area dependent on rainfall. The recent years have also recorded lower mean rainfall and higher variability which has led to natural disasters such as floods, droughts and cyclones. In addition to weather risks, crops are also subject to other risks such as pests and diseases. These variations in weather and attacks by pests and diseases can cause considerable crop loss and uncertainty over decisions around agricultural production which in turn has a direct impact on the lives and livelihoods of a majority of the country’s population. Hence, adequate crop insurance has sustained relevancy in discussions surrounding agricultural livelihoods.

Against this context, the PMFBY, introduced in 2016, is a successor to multiple-peril crop insurance schemes provided in India, such as NAIS and MNAIS. This report presents the contexts and findings of a process evaluation aimed at understanding the operation of the scheme as it exists in Karnataka. Unlike most other studies on crop insurance, which are either theoretical in nature or examine the impact of a certain scheme on farmers’ lives, this field-based study employs qualitative and quantitative methods to understand the processes of the scheme through the experiences and roles of various stakeholders. It attempts to provide an overview of how the scheme functions, the challenges, the evolution that has taken place in responding to these challenges and also the experiences of various stakeholders, especially farmers, who are the primary beneficiaries of the scheme.

CBPS. (2017). Public expenditure on children in Karnataka: 2001-2002 to 2017-2018. Washington DC: International Initiative for Impact Evaluation (3ie).