Rainfall Variability, Risk, and Resilience: A Comparative Study of Insured vs. Non-Insured Farmers in Maharashtra, India

This paper examines the risks involved in Maharashtra’s agriculture and investigates the mitigation strategies adopted by insured and non-insured farmers in Latur and Pune districts. By using a multi-stage sampling method, 400 sample households were selected from two districts. These households comprise 268 insured farmers and 134 non-insured farmers. The results reveal that both rainfall variability and reductions in crop prices significantly impact agricultural revenues. However, the specific risk that carries the most significant weight may vary depending on an individual’s insurance status. Insured farmers are most vulnerable to the unpredictable nature of rainfall, as insurance typically protects against yield losses but not necessarily against market fluctuations. Conversely, non-insured farmers face a constant threat from declining crop prices, even with a good harvest, as they lack the financial buffer provided by crop insurance. This study suggests that the government should integrate pricing risk with crop insurance to reduce risk in agricultural production. Additionally, the farmers should adopt an integrated approach to pest and disease management. The implementation of a comprehensive crop insurance program is needed to ensure equitable coverage for farmers, facilitating widespread benefits. Additionally, more efforts should focus on mitigation of identified risks such as input costs, market fluctuations, and production uncertainties.