Abstract
This chapter argues that crop diversification helps to maximize the utilization of scarce land resource, increase productivity, and reduce risk in agriculture. In West Bengal, there is a scope for increasing crop diversity with increased cultivation of boro rice, potato, different oilseeds, pulses and horticultural crops. However, even though cropping diversity can reduce several limitations and risks involved in traditional methods of agriculture, it cannot eliminate the risk element completely. Agricultural productivity in West Bengal largely suffers due to small farm size. Changes in cropping pattern intensify the need for stronger financial institutions. Owing to the prevalence of small and marginal farmers in West Bengal, over-dependence on credit has become a problem for the state. In order to implement and sustain the benefits from crop diversification technological and institutional supports are required. Agricultural insurance could be an important tool toward effective crop diversification programme. Agricultural insurance provides coverage to the farmers for any loss occurring in agriculture. The scheme extends various kinds of insurance apart from different yield-based crop insurance schemes that protects farmers in case of crop failure due to natural hazards, man-made hazards, perils and risks due to technological changes and change in economic policies pursued by the Government. Agricultural insurance could also help the farmers to take risk involved with technological changes and change in cropping pattern protecting the probable financial risks. The study reveals that insurance in agriculture is less explored area and there is further scope in the state of West Bengal in its effort toward reducing the risks associated with crop diversification. It has stressed to explore the methods through which the benefits could reach to the needy ones.
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Notes
- 1.
- 2.
See Sainath; The Hindu, Farmers suicide is not the crisis, it is the outcome; 08 March 2011.
- 3.
See Nath et al. (2008) for details.
- 4.
Adverse selection: It refers to a market process in which “bad” results occur when buyers and sellers have asymmetric information (i.e. access to different information). In insurance sector it means selective participation in crop insurance program. For example, participating during potential adverse seasons and avoiding the normal ones.
- 5.
Sinha (2004) explored the scope of private insurances in agriculture.
- 6.
About 209,926 ha of crop area was affected due to ‘Aila’—Aila cyclone report 2009.
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Banerjee, D., Bhattacharya, U. (2015). Problems of Crop Diversification in West Bengal. In: Ghosh, M., Sarkar, D., Roy, B. (eds) Diversification of Agriculture in Eastern India. India Studies in Business and Economics. Springer, New Delhi. https://doi.org/10.1007/978-81-322-1997-2_13
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