Climate Risk Insurance for Farmers in India: Effectiveness, Gaps and Emerging Technology
Mallepally Greeshma and Idemakanti Chandrakanth Reddy
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Abstract:
Agricultural productivity and incomes are greatly affected by the variability of climate conditions and the occurrence of extreme weather, which are also especially damaging for small and marginal farmers. Climate risk insurance helps to transfer parts of the risk and improve financial resilience of farmers. This paper explores the effectiveness of agricultural climate risk insurance and its key gaps, paying special attention to India. The research is based on the existing secondary literature, government reports, and available evidence, with PMFBY scheme in India used as an example of agricultural climate risk insurance in the country and IBLI project in East Africa as a comparison tool. Basis risk, delayed claims, lack of awareness of farmers, data problems, affordability, and institutional coordination are among the main barriers. New technologies such as remote sensing, YES-TECH, WINDS, and claims through smartphone are possible options for improving insurance. Technology alone is not enough for proper functioning of agricultural climate risk insurance; suitable products, settlements, good data, and farmers’ involvement are also necessary.
Keywords:
Climate risk insurance; PMFBY; crop insurance; basis risk; index insurance; smallholder farmers; remote sensing; agricultural risk management
Citation: Mallepally Greeshma and Idemakanti Chandrakanth Reddy (2026). Climate Risk Insurance for Farmers in India: Effectiveness, Gaps and Emerging Technology. Horizon J. Hum. Soc. Sci. Res. 8 (S), 163–169. https://doi.org/10.37534/bp.jhssr.2026.v8.nS.id1405.p163
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