emerging approaches in climate risk management in agriculture pramod aggarwal, pramod joshi, alok...
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Emerging approaches in climate risk management in agriculture
Pramod Aggarwal, Pramod Joshi, Alok Sikka, Kolli Rao and others CGIAR Research program on Climate Change, Agriculture and Food Security
International Water Management Institute, New DelhiInternational Food Policy Research Institute
NICRA-Indian Council of Agricultural ResearchAgricultural insurance Company of India Limited
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India faces increasing challenges due to climatic risks
Frequent episodes of droughts, floods, cyclones, very heavy rainfall, heat waves, and frost in one or the other part of the country
Climate change will further increase such events
(Source: Erickson et al., 2011)
Increasing preparedness of Indian farmers to climatic risks: Regionally differentiated solutions needed
Recent developments in climate risk management
1. Improved crop insurance– Site specific weather indices– Community crop insurance
2. Climate smart villages for sustainable food security in risk prone regions
3. New tools to support developed of national and state level adaptation action plans and resource allocation
4. Climate analogues for farmer to farmer learning of risk management approaches
Only a fraction of non-loanee farmers avail crop insurance
Insurance knowledge limited with most stakeholders
Index insurance carries some ‘basis risk’, but most farmers believe the correlation between their losses and the crop insurance payments is not adequate
Delay in settlement of claims (delay in receiving harvest data of crops, funding issues)
AIC-CCAFS partnership on index insurance
• Weather Based Crop Insurance Scheme (WBCIS) since 2007 - Weather proxies for yield, implemented in 175 districts, covers most crops,
11.61 million farmers insured during 2011-12
• Problems of basis risk, although reduced, persisted. New indices for key crops developed for all agro-climatic zones
– further minimizing product basis risk using crop models and soil and weather databases
Rainfall triggers for rice, cotton, soybean, pearl millet, and corn Heat (high temperature) triggers for wheat, mustard and
chickpea Product testing during Kharif and rabi 2013
Objectives:Compensate farmers on the basis of actual crop loss at farm level (zero basis risk)Empowering the community to manage the programUse of technology for transparency, trust and to mitigate the risk of moral hazardQuick settlement of claimsFinancial literacyValue added services like agro-advisories and market prices
The process of community insurance
1. Organize farmers: – Cooperatives/associations/producer companies– Digital enrolment and geo-tagged, dated images of
the insured fields by a progressive farmer
2. Farmers notify any damage to crops to the cooperative within 24 hours
3. Loss assessment by the cooperative nominee within next 48 hours -supported by digital pictures and video footage
4. Claim to be released into the bank account of the insured farmer within a week, followed by ‘SMS’ notification