Report No. 53081-bd agricultural Insurance in Bangladesh Promoting Access to Small and Marginal Farmers June 2010 the world bank south Asia Poverty Reduction, Economic Management, Finance and Private Sector Development Insurance for the Poor
Expected Value of Losses (Claims Costs) for National Crop Portfolio
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- The average value of lost production is estimated at Tk 25.5 billion per year (US$375 million)
- Table 3.2. Bangladesh: Major Crops. Annual Average Value of Crop Losses for 100 percent Insured Yield Coverage Level (Tk)
- Average Losses as % of Total Values at Risk
- TOTAL 26,361,244 400,304,000,000 100%
- Geographical Distribution of Crop Losses The regions with larger cultivated areas of paddy and wheat tend to have lower expected losses.
- Table 3.3. Bangladesh: Average Expected losses by Crop and Great District (Tk millions)
- Region Crop
- Total per Region Loss Cost Rank
- Total Crop 7,251 798 2,232 842
- Map 3.6. Bangladesh Spatial Distribution of Crop-loss Costs for 100 percent Insured Yield
Expected Value of Losses (Claims Costs) for National Crop Portfolio The CRAMR is programmed to calculate the expected value of losses or claims costs and the associated pure loss costs for insured yield coverage levels of 100 percent of the five-year average yield for each for the eight crops. The average value of lost production is estimated at Tk 25.5 billion per year (US$375 million) under the assumption of a 100 percent insured yield coverage level, over the period 1969–70 to 2007–08, representing 6.4 percent of the total VAR in the country for the eight assessed crops. Boro HYV paddy, the largest crop accounting for 53 percent of VAR, exhibits the lowest lost cost of 5.7 percent, or in other words it is the least risky of the eight crops which have been analyzed. This is due to the fact that Boro HYV paddy is irrigated and is grown in the Rabi dry season, when the risk of flood is at its lowest. However, Rabi irrigated HYV wheat shows the second highest yield variability of any crop, with an average annual expected value of losses of nearly 9 percent, and it is probable that more wheat is grown in areas which do not have assured irrigation supply. Aman HYV paddy, which is the second largest crop by value or 28 percent of VAR, exhibits a relatively low loss cost of 6.4 percent. Aman LBV paddy exhibits the highest loss costs with average annual losses of 12.4 percent of VAR. Table 3.2 shows the average annual expected losses for each of the 8 crops analyzed in the CRAMR. Table 3.2. Bangladesh: Major Crops. Annual Average Value of Crop Losses for 100 percent Insured Yield Coverage Level (Tk)
Source: Authors from BBS yield data. Geographical Distribution of Crop Losses The regions with larger cultivated areas of paddy and wheat tend to have lower expected losses. For example, Rajshashi Great District, which is the most important crop-producing region in Bangladesh, accounting for Tk 37.0 billion of crop values or 9.1 percent of the total national crop VAR, is ranked 18th out of the 23 regions in terms of the expected value of losses. Conversely, Patuakhali, which is located in 20th position in terms of crop production and VAR, is ranked 4th in terms of the expected value of losses (annual average loss cost). The exception to this relation is Sylhet, which is ranked in 4th position in terms of crop VAR and ranked in 2nd place in terms of annual average loss cost. Table 3.3, presents the average annual expected value of crop losses for each of the eight crops analyzed in the CRAMR, with a breakdown per region. Table 3.3. Bangladesh: Average Expected losses by Crop and Great District (Tk millions)
Source: World Bank CRAMR. The loss exposure varies by crop and by region. The most risky areas for pre-Kharif paddy crops are Jamalpur and Sylhet Great Districts, respectively, with 16.7 percent and 10.9 percent annual average losses. On the other hand, the lowest annual average losses in pre-Kharif paddy crops, with loss costs of between 4 percent and 6 percent, apply to the southeastern great districts of Jessore, north of Khulna, Kushtia, and Barisal. For Kharif paddy crops, the highest annual average losses of between 8 percent and 10 percent are in the central great districts of Fradipur, Dhaka, and Comilla. Conversely, Kharif paddy grown in the Great Districts located in the hill tracks have the lowest annual average expected losses, between 4 percent and 6 percent of the VAR. Rabi crops, with annual average loss cost in the range of 4 percent to 6 percent, tend to be less risky in central and northwestern parts of the county; in the northeastern and southern areas of the country Rabi crops are more exposed to risk and the annual average loss cost is as high as 13.23 percent of VAR. The geographic distribution of annual average crop losses per crop and Great District is presented in map 3.6. Annex 6 provides further details of the pattern of losses in all of the eight assessed major crops. In the design of any future crop insurance program in Bangladesh, the analysis of the geographical distribution of losses by crop type and by region (District) will be very important for portfolio planning, achieving a balanced spread of risk, and ensuring that crop insurance does not focus only on the most risky crops in the most risk-exposed Districts. Map 3.6. Bangladesh Spatial Distribution of Crop-loss Costs for 100 percent Insured Yield   
Source: World Bank from BBS yield data. Directory: curated curated -> Concept stage curated -> Concept stage curated -> Republic of Côte d'Ivoire Urbanization Review curated -> Report No: aus11011 Central America curated -> Report No. 94474-pk fiscal Disaster Risk Assessment Options for Consideration curated -> Environmental and Social Management Framework for the Costa Rica Telecommunications Sector Modernization Project curated -> Environment Impact Assessment For Jiangxi Shangrao Sanqingshan Airport Beijing Guohuantiandi Environmental Technology Development Center. Ltd. Oct. 2012 Content curated -> Growth through Innovation An Industrial Strategy for Shanghai By Shahid Yusuf Kaoru Nabeshima April 22nd, 2009 curated -> Report No: 70178. People's Republic of China Download 5 Mb. Share with your friends:
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