CROP INSURANCE: THE THEORETICAL PERSPECTIVE AND THE POLICY APPLICATION IN INDIA
Agriculture being a risky venture is subjected to various uncertainties in production and volatility in prices. Since the market will not provide coverage against the production risk, therefore government has come up with crop insurance programme. Although government of India initiated crop insurance way back in 1970s they met with limited success as the coverage of most of the schemes remained very low. To overcome the shortcomings of previously initiated schemes, government has now come up with the ambitious PMFBY.
KEYWORDS- Agricultural risk, Crop Insurance, Claim-Premium Ratio, Sum Insured