An economic analysis of crop insurance and its feasibility in eastern Uttar Pradesh

Abstract

Fluctuation of the yield of major crops in India is a common phenomenon due to natural hazards, like drought, flood, pest and disease. Hence the income of farmer’s become instable perhaps crop insurance scheme is a suitable method to reduce such uncertainties. An attempt has been made to study the economic aspects of crop insurance scheme and its feasibility. The study is based on secondary data. The results reveal that there was a wide fluctuation in the yield of food grains in eastern Uttar Pradesh. The crop insurance was not found only feasible but it appeared self sustaining in the long run. Rainfall was also varied which is main reason for fluctuation of yield.