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Emerging approaches in climate risk management in agriculture

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

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Emerging approaches in climate risk management in agriculture

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  1. 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

  2. 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)

  3. Increasing preparedness of Indian farmers to climatic risks: Regionally differentiated solutions needed

  4. Recent developments in climate risk management • Improved crop insurance • Site specific weather indices • Community crop insurance • Climate smart villages for sustainable food security in risk prone regions • New tools to support developed of national and state level adaptation action plans and resource allocation • Climate analogues for farmer to farmer learning of risk management approaches

  5. 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) Crop Insurance: Key Challenges

  6. 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

  7. 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 Way forward through innovation- community crop insurance

  8. The process of community insurance • Organize farmers: • Cooperatives/associations/producer companies • Digital enrolment and geo-tagged, dated images of the insured fields by a progressive farmer • Farmers notify any damage to crops to the cooperative within 24 hours • Loss assessment by the cooperative nominee within next 48 hours -supported by digital pictures and video footage • Claim to be released into the bank account of the insured farmer within a week, followed by ‘SMS’ notification

  9. Climate smart villages/farms: Key interventions

  10. Climate Smart Pulse Village • Goal: sustainable increase in pulse production and income of farmers • 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

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