Rice ecosystem heterogeneity and determinants of climate risk adaptation in Indian agriculture: farm-level evidence

Pandaraiah Gouraram, Phanindra Goyari and Kirtti Paltasingh

Journal of Agribusiness in Developing and Emerging Economies, 2022, vol. 14, issue 2, 146-160

Abstract: Purpose - This paper examines the determinants of concurrent adoption of farm risk management strategies by rice growers in two different ecosystems of Telangana agriculture-irrigated and rainfed ecosystems. Design/methodology/approach - The primary data have been collected from the rice growers in two different ecosystems, and after checking the variance inflation factor (VIF) for controlling multicollinearity, a multinomial logit model has been used to examine the determinants of concurrent adoption of coping strategies by rice growers. Findings - The study finds that adopting one risk management strategy persuades farmers to embrace other strategies, reducing the risk in agriculture between the two ecosystems. Among the determinants, farmers' age, education, contact with extension services, irrigation sources, livestock income, total farm income, crop loss reasons, and crop insurance awareness significantly influence the adoption of various risk management measures. However, considerable heterogeneity is found among the driving forces across the rice ecosystems. Research limitations/implications - The major policy implications that can be drawn from the analysis are increased access to information through government-funded extension services and the provision of alternative risk management technologies, such as drought-resistant or flood-resistant seeds, farmers' field schools and increased provision of crop insurance, farmer-friendly agriculture extension services, and farm investment support, are critical for assisting farmers managing risks. In addition, however, there should be ecosystem-specific policies to tackle the ecosystem heterogeneity. Originality/value - This paper is very timely and entails some relevant policy implications for the development of Indian agriculture.

Keywords: Indian agriculture; Risk management; Crop insurance; Multinomial logit model; Q10; Q12; C13 (search for similar items in EconPapers)
Date: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eme:jadeep:jadee-03-2022-0044

DOI: 10.1108/JADEE-03-2022-0044

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