FARMERS' PERCEPTION TOWARDS CROP AND LIVESTOCK INSURANCE IN BIRENDRANAGAR MUNICIPALITY OF SURKHET DISTRICT: A CASE STUDY ON PRESENT STATUS, CONSTRAINTS AND POTENTIALS FOR FUTURE

Abstract

A simple case study was conducted concerning farmers’ perception towards agriculture and livestock insurance in Birendranagar municipality of Surkhet valley. The foremost intention of this research survey was to appraise the current scenario of crop and livestock insurance with constraints and future prospects regarding minimization of agriculture risk and losses among farmers of study area. Prior to the household survey, a key informant survey was conducted with personnel of the Birendranagar municipality office. A total of 100 farmers were selected by random sampling technique and scheduled interviews were carried out during Nov-Dec 2021. The study included 63 non-insurers and 37 insurers as respondents. The average income of insurer farmers was found to be higher than the non-insurer farmers. Majority (78%) of insurance adopters were livestock insurers. More than half (51.72%) of livestock insurers perceived the damage from accident and death of animals as a major risk. Majority of the crop insurers (75%) perceived damage from adverse climatic conditions as a major risk. Income stability was perceived as the most important benefit gained from joining insurance with Relative Importance Index (RII) 0.784. Insurers were found to be most satisfied with the policy of risk coverage with Relative Satisfaction Index (RSI) 0.681. The study divulged lack of information about benefits of insurance and awareness related to insurance services as the major factor behind not joining insurance by more than two-third of respondents (70.49%). Majority of insurers (62.17%) asserted delaying in claim payment as the major drawback of insurance service providers. Improving access of farmers’ on agriculture credit, effective publicity of insurance schemes and awareness generation programs regarding risk management strategies can play a crucial role to minimize risks related to crop and livestock production in near future.