The working group on risk management in
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| 4.4. Weather insurance: Many agrarian economies owe their strength to favorable weather parameters, such as rainfall, temperature, sunshine, etc. However, these economies are ill equipped, to deal with adverse weather incidences. Therefore, reducing vulnerability to weather in developing countries is a critical challenge, facing development in rain fed areas. Sixty five percent of Indian agriculture is heavily dependent on rainfall, and, therefore, is extremely weather sensitive. Several studies including those by the National Commission on Water, have established that rainfall variations, account for more than 50% of variability in crop yields. Many agricultural inputs, such as soil, seeds, fertilizer, management practices, etc., contribute to productivity. However, weather, particularly rainfall, has overriding importance overall other factors. The reason is simple - without proper rainfall, the contributory value of all the other inputs diminishes substantially. The basic idea of weather insurance, is to estimate the percentage deviation in crop output due to adverse changes in weather conditions. There are statistical techniques to workout the relationships between crop output and weather parameters. This gives the linkages between financial losses suffered by farmers, due to weather variations and also estimates the indemnities that will be payable. Analysis could also include, contingencies associated with the timing and the distribution of weather parameters, particularly rainfall, over the season. Download 0.68 Mb. Share with your friends:
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