Research on World Agricultural Economy

Agricultural Insurance in Maharashtra, India: Determinants of Adoption and Policy Implications

Arvind Rite

Symbiosis School for Online and Digital Learning, Symbiosis International (Deemed University), Pune 412115, India

Vikas Abnave

YouthAid Global Services Private Limited, Pune 411001, India

DOI: https://doi.org/10.36956/rwae.v7i1.2174

Received: 19 May 2025 | Revised: 1 August 2025 | Accepted: 2 September 2025 | Published Online: 16 December 2025

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Abstract

Maharashtra is known as a rainfed agricultural state and is highly prone to climatic fluctuations. Crop insurance schemes play a vital role in ensuring farmers' incomes during crop failures. However, the execution of PMFBY in India has faced numerous challenges, such as delays in settling claims, discrepancies between premiums collected and claims paid out, and unequal distribution. These multifaceted challenges highlight the complexity and the need to identify the determining factors for better adoption of the crop insurance scheme. Therefore, the key objective of this paper is to analyse the performance of PMFBY in Maharashtra, identifying key issues and barriers to its effectiveness and inclusiveness. This study adopts a mixed-methods approach. Secondary data was collected from existing literature, policy papers/reports to grasp the first-hand information. Primary data gathering encompasses surveys and discussions with 400 farmers, and insurance personnel, to glean insights into their encounters, perceptions, and suggestions concerning PMFBY. This research endeavours to examine the factors that influence the engagement of farmers in crop insurance programs through the application of binary logistic regression analysis. We analysed the impact of demographic, socio-economic, and behavioural variables on the probability of obtaining insurance coverage. The key findings indicate that educational attainment and access to irrigation resources enhance the likelihood of insurance participation, whereas gender and caste affiliations, exhibit a correlation with diminished participation rates. These findings underscore the need of targeting marginalized populations and augmenting access to essential infrastructure in order to enhance insurance coverage and encouraging farmer involvement.

Keywords: Crop Insurance; Climate Change; Rain‑fed; Risk Mitigation

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