Farmer's Perception towards Crop Insurance

Indian agriculture is highly dependent on unpredictable weather, especially monsoons, making it a risky occupation. Despite knowing the risks, farmers continue farming, driven by tradition and necessity. A Telugu saying reflects this mindset: "We may incur losses through farming, but we must never stop farming." Unfortunately, continuous losses and debt have led some farmers to commit suicide. According to the National Crime Records Bureau (2023), about 4% of 154 farmers and laborers who died by suicide did so because their responsibilities exceeded their resources.Crop insurance is a vital tool to reduce agricultural risk. However, awareness among farmers remains very low. Most farmers are unaware of which companies offer insurance, the features of the schemes, or the premium amounts, especially since banks often deduct premiums directly when issuing loans. While crop insurance is mandatory for loaned farmers, its benefits are undermined by lack of knowledge.To improve the system, awareness campaigns are urgently needed. Governments and insurance companies must educate farmers, reduce premiums for smallholders, include tenant farmers, and ensure timely payments.