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Transcript
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 Delhi
International Food Policy Research Institute
NICRA-Indian Council of Agricultural Research
Agricultural insurance Company of India Limited
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)
2
Increasing preparedness of Indian farmers to climatic
risks: Regionally differentiated solutions needed
Technologies
Policies
Infrastructure
Institutions
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
program
 Use of technology for transparency, trust
and to mitigate the risk of moral hazard
 Quick settlement of claims
 Financial literacy
 Value 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
Climate smart villages/farms: Key interventions
Climate Smart Pulse Village
Nitrogen
smart
Policy
smart
Water
smart
Goal: sustainable increase
in pulse production and
income of farmers
•
•
Climate
Smart
Knowled
ge smart
Energy
smart
•
Weather
smart
Carbon
smart
Linkage with Pulse village
programs
Crowdsourcing for seed
multiplication and
distribution
Climate resilience
enhancing interventions
such as insurance, ICT
based advisories, use of
climate analogues