Impact of Crop Insurance on Technology Adoption and Investment in Agriculture: Empirical Evidence from Odisha, India: 24524
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https://doi.org/10.35716/IJED-24524
Author: Saddam Hossen Majumder, Biswajit Mondal and Nivedita Deka
Author Address: M.S. Swaminathan School of Agriculture, Centurion University of Technology and Management, Gajapati- 761211 (Odisha)
Abstract
This
study examined the impact of crop insurance on farmers’ technology adoption and
investment behaviour, using data from 120 insured and 120 uninsured farmers in
the Jagatsinghpur and Kendrapara districts of Odisha. The results showed
that insured farmers generally had larger farms, though over 90 per cent of respondents
remained marginal or small. Most farmers accessed loans through cooperative banks, with insured
farmers showing a preference for these institutions. Crop insurance benefits
included increased awareness of government schemes, financial support during
adverse conditions, and protection against crop failure. However, frequent
climatic risks discouraged farmers from making significant investments. Using
the Difference-in-Differences (DiD) method, the study found minimal differences
in agricultural investment between insured and non-insured farmers. A
demand-driven strategy focused on young, educated farmers and enhanced
extension services could improve adoption and resilience in the face of
adversity.
Keywords:
Crop insurance, difference-in-difference model, PMFBY, technological adoption
index.
JEL Codes: C00,
C19, C83, Q16, Q18
Description
Indian Journal of Economics and Development
https://doi.org/10.35716/IJED-24524
Impact Factor: 0.2 (2025)
NAAS Score: 6.30 (2025)
Indexed in Scopus (SJR = 0.15)