Abstract

The development of crop insurance in India has been driven by historical agricultural background, from informal risk-sharing mechanisms to formalised advanced insurance schemes designed to cover farmers from financial losses caused by non-particular exposure, such as natural calamities, insects, and diseases. Of these risks, flagship programmes, the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Weather Based Crop Insurance Scheme (WBCIS) reduce the impacts of these risks by providing financial protection, bolstering the resilience and sustainability of agricultural livelihoods. Although there have been impressive developments, crop insurance measures in India continue to face several problems, including poor farmer awareness, poor risk perception, and a shortage of simplified mechanisms for dispute resolution. Moreover, the difficulties engendered by the historic changes and the private sector involvement have also provoked discussion about the level of transparency and participation among the players, worsened by the Covid-199 pandemic. Technological incorporation, regulatory modifications, and increased communication have been identified as essential segments for the growth and amelioration of [these] schemes. This paper deals with historical, legal and operational aspects of crop insurance in India, critically assessing existing shortcomings and recent advances, such as draft amendments to the PMFBY. With the development of the crop insurance model in India, it is essential to maintain an efficient working system among farmers, insurers, and the government in order to achieve agricultural sustainability and food security in a dynamic world.

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