A Study Of Insurance Participation And Input Usage Among Paddy Cultivation In Mayiladuthurai District Of Tamil Nadu
Abstract
Paddy cultivation plays a pivotal role in global agriculture, yet its sustainability and productivity are threatened by climate variability and economic uncertainties. This study examines the relationship between insurance participation and input usage among paddy farmers in Mayiladuthurai District, Tamil Nadu, India. By analyzing data from 110 farmers using structured questionnaires and interviews, the study explores how insurance schemes influence farmers' decisions regarding seeds, fertilizers, pesticides, and water management practices. The research employs both descriptive and inferential statistics, including regression analysis, to evaluate the impact of insurance on input usage and to identify socio-economic factors affecting insurance participation. The findings reveal a nuanced relationship between insurance participation and input usage among paddy farmers. Initially, insured farmers tend to exhibit reduced input usage, reflecting risk-averse behaviors to minimize potential losses. However, deeper analysis incorporating socio-economic variables such as farm size, access to credit, and education levels suggests that insurance participation can positively influence input usage. Larger farms with better access to credit are more likely to participate in insurance schemes, indicating these factors play significant roles in farmers' risk management strategies. Education also emerges as a critical determinant, enhancing farmers' understanding of insurance benefits and mechanisms. Policy implications highlight the need for targeted interventions to enhance insurance uptake among paddy farmers. These include tailored subsidies for small and marginal farmers, educational programs on risk management, and integrated support systems combining insurance with access to agricultural inputs. Such measures aim to promote sustainable farming practices, enhance productivity, and build resilience against climatic and economic shocks.
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