Article

Do Risk Management Strategies Prevent Economic and Non-Economic Loss and Damages? Evidence from Drought Affected Households in Western India

Authors:
  • Indian Institute of Technology Tirupati, Tirupati, India
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Abstract

Various transformative and curative measures have been undertaken as part of the disaster risk reduction and climate change adaptation programme to mitigate risks from extreme events in India. Studies have so far explored the causal relationship between these options and economic loss and damage; however, there is a gap in the context of non-economic loss and damage in general, and drought in particular. This study, therefore, aims to investigate the role of risk management options in preventing economic and non-economic risks from droughts in western India. Irrigation and crop-insurance are found to be the most frequently used adaptive measures among the sample households. Overall, this study reveals that irrigation mitigates damage risks, whereas crop-insurance fails to smoothen consumption, particularly the non-economic risks, which is in contrast to expectations. From the policy perspective, the study recommends expansion of irrigated command area with a large-scale adoption of resource efficient technologies, and revisiting the existing insurance mechanism for effective risk management and large scale adoption.

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... Previous studies have pointed out several ways through which crop insurance enhances farmers' wellbeing, and these are: (i) improves farmers' creditworthiness and serves as collateral for crop loans [50], (ii) investing in high-risk and highprofit crops [24], (iii) increase expenditure on agricultural inputs, and thus, higher amount of agricultural output [40,49,61], and (iv) smoothen the farm household's consumption by guaranteeing a minimum income from agriculture [60]. In the case of India, the empirical results are contradictory, i.e., Cariappa et al. [15] report the positive benefits, whereas no evidence is noticed by Cole and Xiong [24] in Telengana and Andhra Pradesh, and similarly, insignificant corroboration is observed in mitigating non-economic loss and damage from drought in Gujarat [4]. Further, the climate change adaptation studies related to farm households highlight the positive impact of crop insurance in driving uptake of several farm-level adaptation options that possibly could increase farmers' resilience capacity [5]. ...
... Previous studies have pointed out several ways through which crop insurance enhances farmers' wellbeing, and these are: (i) improves farmers' creditworthiness and serves as collateral for crop loans [50], (ii) investing in high-risk and highprofit crops [24], (iii) increase expenditure on agricultural inputs, and thus, higher amount of agricultural output [40,49,61], and (iv) smoothen the farm household's consumption by guaranteeing a minimum income from agriculture [60]. In the case of India, the empirical results are contradictory, i.e., Cariappa et al. [15] report the positive benefits, whereas no evidence is noticed by Cole and Xiong [24] in Telengana and Andhra Pradesh, and similarly, insignificant corroboration is observed in mitigating non-economic loss and damage from drought in Gujarat [4]. Further, the climate change adaptation studies related to farm households highlight the positive impact of crop insurance in driving uptake of several farm-level adaptation options that possibly could increase farmers' resilience capacity [5]. ...
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Understanding the factors that give rise to greater or lesser adaptive capacity among households with in a community could allow government interventions to target the right groups of people. In this paper we study such factors, making use of a household survey administered in the Indian state of Odisha. In the survey, we queried respondents for the adaptations that they had engaged in to deal with the risk of drought, as well as a number of indicators for adaptive capacity taken from the literature. We found a large number of indicators of adaptive capacity to correlate with one or more adaptations taken. However, many of these indicators, while increasing the likelihood that one adaptation would be taken, also decreased the likelihood that another would be taken, and hence were not unambiguous determinants of greater adaptive capacity in general. One indicator, access to crop insurance, stood out as particularly effective: it correlated with an increased likelihood of engaging in two separate yield-raising adaptations, and correlated with a decreased likelihood of engaging in two additional adaptations that would have the effect of reducing yields. The results suggest that further attention to crop insurance may be warranted, as well as further research to determine if the other indicators may be effective in other contextual settings.
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A literature survey indicates that farmers can adopt many strategies to cope with climate change. On the basis of 160 interviews in Gujarat, India, this paper examines which coping strategies are used by farmers and how government policies influence farmer behaviour. This paper concludes that the impressive drought relief framework focuses more on ex post, short-term responses and does not take into account the potential impacts of climate change or the actual experiences of the poorest farmers. Further, some farmers are able to access the variety of policy assistance that the state offers, but credit and insurance schemes remain out of reach for farmers with low credit ratings and large rain-fed farms.
Article
The challenges of providing insurance to Indian agricultural sector in a manner that is both meaningful and sustaining. Critical assessment of the existing initiative and present possible options for improvement are presented. [NABARD Occasional Paper No. 44]. URL:[http://www.nabard.org/fileupload/DataBank/OccasionalPapers/OC%2044.pdf].
Climate change and community resilience: Insights from South Asia
  • C. S. Bahinipati
  • U. Patnaik
Handbook of research on climate change impact on health and environmental sustainability
  • C. S. Bahinipati
  • U. Patnaik
  • P. K. Viswanathan
Global change, ecosystems and sustainability
  • C. S. Bahinipati
  • P. K. Viswanathan
Technology adoption and employment in less developed countries: A mixed‐method systematic approach
  • M. Ugur
  • A. Mitra
Climate change, adaptation and formal education: The role of schooling for increasing societies’ adaptive capacities in EI Salvador and Brazil
  • C. Wamsler
  • E. Brink
  • O. Rentala
District-level estimation of development indicators for the state Gujarat Research report submitted to Indian Council of
  • C S Bahinipati
Report on task force to derive suggestions to increase agriculture development in Gujarat. Department of Agriculture and Cooperation Government of Gujarat Gandhinagar
  • Gujarat Government Of