Prospects of crop insurance for sustenance of farmers' livelihood during GM cotton crop failure in Indian Punjab

Despite the susceptibility of cotton crops to pest attacks in the Malwa Region of Indian Punjab, no crop insurance policy has been implemented there– not even the Pradhan Mantri Fasal Bima Yojana (PMFBY), which is a central scheme. Therefore, this paper attempts to gauge the likely impact of the PMF...

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Autores principales: Kaur, Sandeep, Singh, Harpreet, Roy, Devesh, Singh, Hardeep
Formato: Journal Article
Lenguaje:Inglés
Publicado: Emerald Publishing Limited 2025
Materias:
Acceso en línea:https://hdl.handle.net/10568/140732
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author Kaur, Sandeep
Singh, Harpreet
Roy, Devesh
Singh, Hardeep
author_browse Kaur, Sandeep
Roy, Devesh
Singh, Hardeep
Singh, Harpreet
author_facet Kaur, Sandeep
Singh, Harpreet
Roy, Devesh
Singh, Hardeep
author_sort Kaur, Sandeep
collection Repository of Agricultural Research Outputs (CGSpace)
description Despite the susceptibility of cotton crops to pest attacks in the Malwa Region of Indian Punjab, no crop insurance policy has been implemented there– not even the Pradhan Mantri Fasal Bima Yojana (PMFBY), which is a central scheme. Therefore, this paper attempts to gauge the likely impact of the PMFBY on Punjab cotton farmers and assess the changes needed for greater uptake and effectiveness of PMFBY.The authors have conducted a primary survey to conduct this study. Initially, the authors compared the costs of cotton production with the returns in two scenarios (with and without insurance). Additionally, the authors have applied a logistic regression framework to examine the determinants of the willingness of farmers to participate in the crop insurance market.The study finds that net returns of cotton crops are conventionally small and insufficient to cope with damages from crop failure. Yet, PMFBY will require some modifications in the premium rate and the level of indemnity for its greater uptake among Punjab cotton farmers. Additionally, using the logistic regression framework, the authors find that an increase in awareness about crop insurance and farmers' perceptions about their crop failure in the near future reduces the willingness of the farmers to participate in the crop insurance markets.The present study looks for the viability of PMFBY in Indian Punjab for the cotton crop, which can also be extended to other crops.Punjab could also use crop insurance to encourage diversification in agriculture. There is a need for special packages for diversified crops under any crop insurance policy. Crops susceptible to volatility due to climate-related factors should be identified and provided with a special insurance package.There exist very scant studies that have discussed the viability of a central crop insurance scheme in the agricultural-rich state of India, i.e. Punjab. Moreover, they do not also focus on crop losses accruing due to pest and insect attacks.
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spelling CGSpace1407322025-12-19T19:03:28Z Prospects of crop insurance for sustenance of farmers' livelihood during GM cotton crop failure in Indian Punjab Kaur, Sandeep Singh, Harpreet Roy, Devesh Singh, Hardeep insurance cotton crop insurance crop losses Despite the susceptibility of cotton crops to pest attacks in the Malwa Region of Indian Punjab, no crop insurance policy has been implemented there– not even the Pradhan Mantri Fasal Bima Yojana (PMFBY), which is a central scheme. Therefore, this paper attempts to gauge the likely impact of the PMFBY on Punjab cotton farmers and assess the changes needed for greater uptake and effectiveness of PMFBY.The authors have conducted a primary survey to conduct this study. Initially, the authors compared the costs of cotton production with the returns in two scenarios (with and without insurance). Additionally, the authors have applied a logistic regression framework to examine the determinants of the willingness of farmers to participate in the crop insurance market.The study finds that net returns of cotton crops are conventionally small and insufficient to cope with damages from crop failure. Yet, PMFBY will require some modifications in the premium rate and the level of indemnity for its greater uptake among Punjab cotton farmers. Additionally, using the logistic regression framework, the authors find that an increase in awareness about crop insurance and farmers' perceptions about their crop failure in the near future reduces the willingness of the farmers to participate in the crop insurance markets.The present study looks for the viability of PMFBY in Indian Punjab for the cotton crop, which can also be extended to other crops.Punjab could also use crop insurance to encourage diversification in agriculture. There is a need for special packages for diversified crops under any crop insurance policy. Crops susceptible to volatility due to climate-related factors should be identified and provided with a special insurance package.There exist very scant studies that have discussed the viability of a central crop insurance scheme in the agricultural-rich state of India, i.e. Punjab. Moreover, they do not also focus on crop losses accruing due to pest and insect attacks. 2025-10-14 2024-04-02T20:40:31Z 2024-04-02T20:40:31Z Journal Article https://hdl.handle.net/10568/140732 en Limited Access Emerald Publishing Limited Kaur, Sandeep; Singh, Harpreet; Roy, Devesh; and Singh, Hardeep. 2025. Prospects of crop insurance for sustenance of farmers' livelihood during GM cotton crop failure in Indian Punjab. Journal of Agribusiness in Developing and Emerging Economies 15(5): 914-935. https://doi.org/10.1108/JADEE-06-2023-0142
spellingShingle insurance
cotton
crop insurance
crop losses
Kaur, Sandeep
Singh, Harpreet
Roy, Devesh
Singh, Hardeep
Prospects of crop insurance for sustenance of farmers' livelihood during GM cotton crop failure in Indian Punjab
title Prospects of crop insurance for sustenance of farmers' livelihood during GM cotton crop failure in Indian Punjab
title_full Prospects of crop insurance for sustenance of farmers' livelihood during GM cotton crop failure in Indian Punjab
title_fullStr Prospects of crop insurance for sustenance of farmers' livelihood during GM cotton crop failure in Indian Punjab
title_full_unstemmed Prospects of crop insurance for sustenance of farmers' livelihood during GM cotton crop failure in Indian Punjab
title_short Prospects of crop insurance for sustenance of farmers' livelihood during GM cotton crop failure in Indian Punjab
title_sort prospects of crop insurance for sustenance of farmers livelihood during gm cotton crop failure in indian punjab
topic insurance
cotton
crop insurance
crop losses
url https://hdl.handle.net/10568/140732
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AT singhharpreet prospectsofcropinsuranceforsustenanceoffarmerslivelihoodduringgmcottoncropfailureinindianpunjab
AT roydevesh prospectsofcropinsuranceforsustenanceoffarmerslivelihoodduringgmcottoncropfailureinindianpunjab
AT singhhardeep prospectsofcropinsuranceforsustenanceoffarmerslivelihoodduringgmcottoncropfailureinindianpunjab