Risk and Distress Management in Indian Agriculture.pptx

Discussing about the Risk and Distress faced by the Indian Agriculture and its causes and mitigation

1. Division of Agriculture Extension and Communication, FoA , Wadura Risk Management and Climate Change Adaptation EXT-605 (2+1) By:- Fathimath Zuhra M.C 07/AG/EXT/25-D Risk and Distress Management in Indian Agriculture

2. Introduction Agricultural Sector in India Employs nearly 50% of India's workforce Contributes approximately 18% to India's GDP Supports livelihoods of over 70% of rural households Dominated by small and marginal farmers (86% of all farmers) Why Risk Management Matters Agriculture is inherently risk-prone Climate change intensifying existing vulnerabilities Market volatility affecting farmer incomes Rising input costs squeezing profit margins Farmer distress manifesting in various socioeconomic issues Impact of Climate Change on Indian Agriculture Source: NABARD Research and Policy Series, Climate Change and Risk Management in Indian Agriculture

3. Key Risks in Indian Agriculture Climate-Related Risks Droughts and water scarcity affecting 68% of India's cultivable area Erratic rainfall patterns disrupting traditional farming cycles Extreme weather events (floods, cyclones, heatwaves) Rising temperatures reducing crop yields (estimated 4-9% reduction per 1°C rise) Market-Related Risks Price volatility and inadequate minimum support price coverage Limited market access for small and marginal farmers Fragmented supply chains with multiple intermediaries Post-harvest losses (estimated at 15-20% for fruits and vegetables) Resource-Related Risks Declining soil health and fertility Groundwater depletion in major agricultural regions Land fragmentation reducing operational efficiency Limited access to quality inputs and technology A farmer examining drought-affected land, illustrating climate-related risks Financial and Social Risks High indebtedness (52% of agricultural households in debt) Limited access to formal credit and insurance Rising input costs reducing profit margins Socioeconomic distress leading to migration and abandonment of agriculture Sources: NABARD Research and Policy Series, Ministry of Agriculture & Farmers' Welfare, National Sample Survey Office

4. Climate Change Impact Projected Temperature Changes Expected increase of 1.5-2.0°C by 2050 under moderate scenarios By 2100, temperature could rise by 1.57-4.8°C depending on emission pathways Increased frequency of heat waves and extreme temperature events Reduced winter chill affecting temperate crops Impact on Crop Yields Sources: NABARD Research and Policy Series, IPCC Assessment Reports, Indian Agricultural Research Institute

5. Climate Change Impact Rainfall Pattern Changes Little change in total annual rainfall but significant shifts in distribution Fewer but more intense rainy days Increased variability in monsoon onset and withdrawal Higher frequency of droughts in rain-dependent agricultural regions Additional Climate Change Effects Increased pest and disease incidence Shifts in agro-ecological zones affecting traditional cropping patterns Rising sea levels threatening coastal agriculture Reduced water availability in major river basins Increased soil degradation and erosion Economic Impact Estimated 4-9% reduction in agricultural productivity per 1°C rise Potential annual economic loss of 2-2.5% of GDP Disproportionate impact on small and marginal farmers Increased volatility in food prices and availability Sources: NABARD Research and Policy Series, IPCC Assessment Reports, Indian Agricultural Research Institute

6. Farmer Distress: Causes and Manifestations Economic Causes Rising input costs without proportionate increase in output prices High indebtedness (52% of agricultural households in debt) Limited access to institutional credit (only 64% of total agricultural credit) Inadequate insurance coverage (less than 30% of cropped area) Environmental Causes Increasing frequency of crop failures due to climate extremes Depleting groundwater resources in major agricultural regions Declining soil fertility and increasing degradation Sources: National Sample Survey Office, Ministry of Agriculture & Farmers' Welfare, National Crime Records Bureau Farmer facing distress due to crop failure

7. Farmer Distress: Causes and Manifestations Farmer facing distress due to crop failure Manifestations of Distress Farmer suicides (over 10,000 reported annually in recent years) Rural-urban migration (estimated 15 million farmers left agriculture between 2001-2011) Abandonment of agriculture as primary occupation Social unrest and protests demanding better support systems Structural Causes Inadequate rural infrastructure (storage, processing, transportation) Limited market access and information asymmetry Weak bargaining power in agricultural value chains Sources: National Sample Survey Office, Ministry of Agriculture & Farmers' Welfare, National Crime Records Bureau

8. Risk Mitigation Strategies Institutional Support Farmer Producer Organizations: Collective bargaining power Extension Services: Knowledge transfer and capacity building MGNREGA: Employment guarantee during agricultural off-seasons Sources: NABARD Research and Policy Series, Indian Council of Agricultural Research, Ministry of Agriculture & Farmers' Welfare Effectiveness of Strategies Traditional Risk Management Crop Diversification: Growing multiple crops to spread risk Stress-Tolerant Varieties: Using drought/flood resistant crops Water Management: Rainwater harvesting, micro-irrigation Technological Interventions Climate-Smart Agriculture: Practices that increase productivity while adapting to climate change Precision Farming: Using sensors and IoT for optimized resource use

9. Risk Mitigation Strategies Sources: NABARD Research and Policy Series, Indian Council of Agricultural Research, Ministry of Agriculture & Farmers' Welfare Financial Risk Management Crop Insurance: Protection against yield and revenue losses Contract Farming: Pre-agreed prices reducing market uncertainty Microfinance: Access to small loans for agricultural inputs Institutional Support Farmer Producer Organizations: Collective bargaining power Extension Services: Knowledge transfer and capacity building MGNREGA: Employment guarantee during agricultural off-seasons

10. Government Policy Initiatives Sources: Ministry of Agriculture & Farmers' Welfare, NABARD, Indian Council of Agricultural Research

11. Sources: Ministry of Agriculture & Farmers' Welfare, PMFBY Portal, Agricultural Insurance Company of India Government Policy Initiatives Insurance and Risk Transfer Comprehensive crop insurance with reduced premiums and improved coverage Pradhan Mantri Fasal Bima Yojana Weather Based Crop Insurance Insurance against adverse weather events based on weather parameters Climate Resilience Programs National Action Plan on Climate Change Launched in 2008 with National Mission for Sustainable Agriculture National Innovations on Climate Resilient Agriculture ICAR initiative to enhance resilience through research and technology Social Safety Nets PM-KISAN Direct income support of ₹6,000 per year to farmer families MGNREGA Employment guarantee during agricultural off-seasons Resource Management Krishi Sinchayee Yojana Integrated water management for agriculture Soil Health Card Scheme Information on soil nutrients and fertilizer recommendations

12. Crop Insurance Schemes Pradhan Mantri Fasal Bima Yojana (PMFBY) Launched in 2016 with premium rates: 2% for Kharif, 1.5% for Rabi crops Covers yield losses due to natural calamities, pests, and diseases Uses technology for crop cutting experiments and claim settlements Weather Based Crop Insurance Scheme Protection against adverse weather conditions using weather parameters Faster claim settlement based on weather data rather than yield Coconut Palm Insurance Scheme Specific insurance for coconut cultivators against natural perils Premium sharing between central government, state, and farmers Improvements Remote sensing and drone technology Smartphone apps for reporting damage Direct benefit transfer for claims Increased weather station coverage Sources: Ministry of Agriculture & Farmers' Welfare, PMFBY Portal, Agricultural Insurance Company of India

13. Crop Insurance Schemes Coconut Palm Insurance Scheme Sources: Ministry of Agriculture & Farmers' Welfare, PMFBY Portal, Agricultural Insurance Company of India Challenges Low awareness among farmers Delays in claim settlement Limited coverage of crops and risks Inadequate yield assessment Improvements Remote sensing and drone technology Smartphone apps for reporting damage Direct benefit transfer for claims Increased weather station coverage

14. Sustainable Approaches Climate-Smart Agriculture Conservation tillage and residue management Precision farming techniques to optimize resource use Agroforestry systems for carbon sequestration Integrated nutrient management reducing chemical inputs Water-efficient irrigation technologies (drip, sprinkler) Resilient Farming Systems Crop diversification to spread risk Mixed farming integrating crops and livestock Indigenous knowledge systems for climate adaptation Stress-tolerant crop varieties (drought, flood, heat) Community-based watershed management Emission Reduction Strategies Improved rice cultivation methods reducing methane Better livestock management for reduced enteric emissions Renewable energy adoption in farm operations Efficient fertilizer application reducing nitrous oxide Economic Sustainability Measures Farmer Producer Organizations for collective bargaining Direct marketing channels reducing intermediaries Value addition at farm level increasing returns Certification systems for sustainable practices (organic, fair trade) Digital platforms connecting farmers to markets Sources: NABARD Research and Policy Series, Indian Council of Agricultural Research, National Innovations on Climate Resilient Agriculture

15. Recommendations and Way Forward Policy Recommendations Integrated Risk Management Framework Develop a comprehensive national framework coordinating various risk management programs Customized Insurance Products Design region-specific insurance with simplified claims and faster settlements Research and Technology Climate-Smart Varieties Accelerate research on crop varieties with enhanced tolerance to climate stresses Early Warning Systems Strengthen agro-meteorological advisory with localized forecasting capabilities Institutional Strengthening Farmer Producer Organizations Promote FPOs to enhance collective risk management and market access Public-Private Partnerships Foster collaborations for innovative risk management solutions Sources: NABARD Research and Policy Series, Indian Council of Agricultural Research, Ministry of Agriculture & Farmers' Welfare

16. Conclusion Multidimensional Challenges Agricultural risks in India are complex and interconnected, requiring integrated approaches that address climate, market, and resource-related vulnerabilities Climate Change Urgency Climate change is intensifying existing risks, with projected yield reductions of 4-9% per 1°C temperature rise, necessitating immediate adaptation measures Smallholder Vulnerability Small and marginal farmers (86% of all farmers) are disproportionately affected by risks due to limited resources and adaptive capacity The Way Forward Shift from reactive disaster management to proactive risk reduction Integrate traditional knowledge with modern scientific approaches Strengthen institutional coordination across different programs Enhance research on climate-resilient agricultural practices Improve financial inclusion and risk transfer mechanisms Final Thoughts Effective risk and distress management in Indian agriculture requires a holistic approach that combines technological innovations, policy reforms, institutional strengthening, and community participation. Building resilience is not just about responding to crises but transforming agricultural systems to thrive amid uncertainty and change. With coordinated efforts across stakeholders, Indian agriculture can evolve from vulnerability to resilience, ensuring food security, farmer welfare, and sustainable development. Sources: NABARD Research and Policy Series, Indian Council of Agricultural Research, Ministry of Agriculture & Farmers' Welfare