Source: BBS, 2009
In Bangladesh the spatial distribution of crop production depends on the farmers’ risk coping strategies. Paddy farmers’ crop cultivation strategies and decisions include (i) which paddy varieties to select for each of the three cropping seasons (local versus high-yielding varieties, short versus long duration, resistance to flooding and/or drought and pests and diseases, etc.); (ii) which type of cultivation system to adopt (broadcast sowing of seeds versus transplanting of paddy seedlings); and (iii) depending on the expected yield and riskiness of their growing locations, how much purchased inputs (fertilizers, plant protection chemicals, Etc.) to apply to the paddy. The combination of these different decision variables means that in Bangladesh it is possible to identify seven different types of paddy crops: (a) Aman high-yield varieties (Aman HYV), (b) Aman local-transplanted varieties (Aman LTV), (c) Aman local-broadcast varieties (Aman LBV), (d) Boro high-yield varieties (Boro HYV), (e) Boro local varieties (Boro LV), (f) Aus high-yield varieties (Aus HYV), and (g) Aus local varieties (Aus LV). High-yielding varieties are typically more input and labor intensive than local varieties, and local transplanted varieties are more labor and input intensive than local broadcasted varieties.
The crops requiring higher investments tend to be cultivated in relatively lower risk areas, while the crops requiring lower investments tend to be cultivated in higher risk areas. Boro HYV, which is a high-input, demanding crop, is cultivated in winter mainly in the central and northern Districts. Conversely, Boro LV paddy, which requires fewer investments than Boro HYV paddy, is grown mainly in the very low lands in the northeast. Aman HYV, which like Boro HYV paddy is an input demanding crop, is grown mainly in the medium lands situated on the western Districts of Bangladesh. Aman LTV paddy, which is a relatively low input crop, is grown throughout the country but mainly in the southern part of the country. Aman LBV paddy, which requires very low investments, is cultivated mainly in the central parts of the country that are prone to floods due to drainage congestion. Aus HYV paddy and Aus LV paddy are grown on a scattered basis throughout the country but mainly in those regions facing tropical cyclone risk, including Noakhali, Khulna, Barisal, and Patuakhali regions. Wheat is cultivated in the areas along the Padma River and northwest Bangladesh regions. The spatial distribution of the cultivated area for the major paddy crops by season and variety is presented in map 3.2. and further details for all main cereal crops are shown in annex 6.
The design of any crop insurance program for Bangladesh should take into consideration the crop management strategies implemented by the farmers in each region. The different strategies have different expected outputs in terms of yields and in terms of yield variability. For instance, Aman LBV, Aus LV, or Boro LV can be considered as relatively speculative crops; farmers, instead of leaving their land fallow, prefer to take the risk and cultivate these opportunistic crops which require very low investment but which have a very uncertain result due to a combination of high climatic risk exposures and low management and technology levels. These 3 speculative and high risk paddy crops are not considered as being suited to crop insurance, at least in the start-up phase. Attention should therefore focus on the HYV transplanted varieties of paddy in the Aman and Boro seasons and also wheat.
Map 3.2. Bangladesh: Spatial Distribution of Cultivated Area of Paddy and Wheat
Aman HYV Paddy
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Aman LTV Paddy
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Boro HYV Paddy 
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Source: World Bank from BBS data.
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