Paddy farmers in Kerala are willing to pay more for a modified crop insurance product Anirudh K C1,*, Aditya K S2, Padmaja Subash Surendran3, Kuruvila Anil1 1Department of Agricultural Economics, Kerala Agricultural University, Vellanikkara, Thrissur680656, Kerala, India 2Division of Agricultural Economics, ICAR-Indian Agricultural Research Institute, New Delhi110012, India 3ICAR-National Institute of Agricultural Economics and Policy Research (NIAP), New Delhi110012, India *Corresponding author: anirudh.jrm@gmail.com
Online Published on 06 October, 2022. Abstract We study paddy farmers in Kerala and analyse the factors affecting their willingness to pay for crop insurance and for a hypothetical crop insurance product. The farmers are willing to pay higher premium rates if claims are settled based on the procurement price, instead of cultivation cost, and promptly; and individual losses are accounted for. A farmer's willingness to pay more is influenced positively by their landholding size and negatively by age. Infrastructural support, and efficient implementation, will help to resolve the design--reality gaps in insurance schemes. Designing popular schemes will reduce the subsidy burden on the public exchequer. Top Keywords Willingness to pay, Crop insurance, Contingent valuation, Dichotomous choice method. Top |