Volume 4, Issue 1, January 2019, Page: 32-40
Prospects of Weather Index-Based Crop Insurance in Bangladesh
Md. Tareq Hasan, Department of Business Administration, Sheikh Fazilatunnesa Mujib University, Jamalpur, Bangladesh
Received: Jan. 9, 2019;       Accepted: Feb. 11, 2019;       Published: Feb. 27, 2019
DOI: 10.11648/j.ijae.20190401.15      View  93      Downloads  70
Abstract
Agricultural sectors of Bangladesh are frequently affected by natural disasters such as droughts, excessive rainfall, floods, flashflood, heavy fog, earthquakes, storm, cyclones, salinity and landslides. Agriculture or crop insurance is an important method by which farmers can stabilize their income and investment against disastrous effect of losses for natural hazards or low market price of the crops. Crop insurance helps the farmers of developing and under developed countries to initiate production activities after a bad agricultural period. At first, Green Delta Insurance Company has started Weather Index Insurance since 2015 by supporting of World Bank group in Bangladesh. Later on, Sadharan Bima Corporation (SBC) also proposed another new project named ‘Weather Index-Based Crop Insurance (WIBCI)’. Agriculture or crop insurance should be based on risk management strategy. The purpose of this study is to implement and further possibility of weather index-based crop insurance in Bangladesh and descriptive method is used to represent the information. The possible result of this study is continuous crops production activities of the farmers after a natural disaster. Bangladesh should have started agriculture or crop insurance system earlier for better output from agricultural sectors.
Keywords
Agriculture, Crop, Disaster, Insurance, GDIC, WIBC
To cite this article
Md. Tareq Hasan, Prospects of Weather Index-Based Crop Insurance in Bangladesh, International Journal of Agricultural Economics. Vol. 4, No. 1, 2019, pp. 32-40. doi: 10.11648/j.ijae.20190401.15
Copyright
Copyright © 2019 Authors retain the copyright of this article.
This article is an open access article distributed under the Creative Commons Attribution License (http://creativecommons.org/licenses/by/4.0/) which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.
Reference
[1]
Bangladesh Bureau of Statistics. (2017, June 19). Yearbook of Agricultural Statistics of Bangladesh 2016. Retrieved from http://bbs.portal.gov.bd/sites/default/files/files/bbs.portal.gov.bd/page/1b1eb817_9325_4354_a756_3d18412203e2/Yearbook-2016-Final-19-06-2017.pdf.
[2]
Bangladesh Red Crescent Society. (August 16, 2017). Monsoon floods in Bangladesh. Retrieved from https://reliefweb.int/sites/reliefweb.int/files/resources/SitRep_2_Bangladesh%20Flood_16%20August%202017.pdf.
[3]
Bryla, E. and Syroha, J. (March 2007). Innovation briefs of United Nations (UN). Sustainable Development. Retrieved from http://www.un.org/esa/sustdev/publications/innovationbriefs/no2.pdf.
[4]
CCAFS (2013). Weather index-based insurance. Retrieved from https://cgspace.cgiar.org/bitstream/handle/10568/34366/CCAFS-Index-Insurance.pdf.
[5]
Dick, W. J. A. and Wang, W. (2010). Government interventions in agricultural insurance. Elsevier B. V. Conference conducted at the meeting of the international conference on agricultural risk and food security 2010. Retrieved from www.sciencedirect.com.
[6]
FAO. (n, d). The impact of disasters on agriculture and food security. Retrieved from http://www.fao.org/3/a-i5128e.pdf.
[7]
Hess, U. and Hazell, P. (2016). Innovation and emerging trends in agricultural insurance. Deutsche Gesellschaft fur InternatioaleZusammenarbeit (GIZ) GmbH. Retrieved from https://www.giz.de/fachexpertise/downloads/giz-2016-en-innovations_and_emerging_trends-agricultural_insurance.pdf.
[8]
IFC (2018, February 06). IFC increases reach of index insurance for small holder farmers in Zambia. IFC Press Release. Retrieved from https://www.indexinsuranceforum.org/news/ifc-increases-reach-index-insurance-small-holder-farmers-zambia
[9]
Iturrionz, R. (2009). Agricultural Insurance. Retrieved from http://siteresources.worldbank.org/FINANCIALSECTOR/Resources/Primer12_Agricultural_Insurance.pdf.
[10]
Joseph, W. G. (October 2015). Agricultural Insurance and the World Trade Organization. IFPRI Discussion Paper 01473. Washington, DC: International Food Policy Research Institute. Retrieved fromhttp://ebrary.ifpri.org/cdm/singleitem/collection/p15738coll2/id/129733/rec/1.
[11]
Li, X. (2014). Retrieved from http://www.casact.org/education/reinsure/2014/14_Reinsurance_Onsite.pdf.
[12]
Lomot, M. J., Lyskawa, K. and Rozumek, P. (2015, May). Farm income insurance as an alternative for traditional crop insurance. Elsevier B. V. Conference conducted at the meeting of the economies of Balkan and Eastern Europe countries in the changed world, EBEEC 2015, May 8-10. Retrieved from www.sciencedirect.com.
[13]
Marza, B., Angelescu, C. and Tindeche, C. (2015). Agricultural insurance and food security. The new climate change challenges. In Elsevier B. V. Conference conducted at the meeting of the economic prospects in the context of growing global and regional interdependencies, IECS 2015. Retrieved from www.sciencedirect.com.
[14]
Ministry of Agriculture. (2018). Agriculture at a Glance. Retrieved from http://www.moa.gov.bd/site/page/4fb627c0-d806-4a7e-a1cd-b67d4bc85159/Bangladesh-Agriculture-at-a-Glance.
[15]
Mridha, M. U. (August 16, 2016). Floods cut vegetable exports by half. The Daily Star. Retrieved from http://www.thedailystar.net/business/floods-cut-vegetable-exports-half-1270402.
[16]
Nagaraju, J. (2014). Agricultural Insurance Schemes in India. Osmania Journal of International Business Studies 09(1), 00973-5372 (P) 139-141. Retrieved from https://docs.google.com/file/d/0Bz5dEy-trJdzUno3NDVBSHdFTWs/edit?pli=1.
[17]
Porth, L. and Tan, K. S. (2015). Agricultural Insurance. The Actuary Magazine. Retrieved from https://www.soa.org/Library/Newsletters/The.../act-2015-vol12-iss2-porth-tan.pdf.
[18]
Quiggin, J., Karagiannis, G. and Stanton J. (n.d.). Crop insurance and crop production: an empirical study of moral hazard and adverse selection. Australian Journal of Agricultural economics 37(2), 95-113. Retrieved from http://www.uq.edu.au/economics/johnquiggin/JournalArticles93/Cropins93.pdf.
[19]
SadharanBima Corporation. (2017). Weather Index-Based Crop Insurance. Retrieved from http://www.sbc.gov.bd/site/page/2392c19a-5c74-49d5-ade5-bca63989a911/Weather-Index-Based-Crop-Insurance.
[20]
Swain, M. (2014). Crop Insurance for Adaptation to Climate Change in India. Asia Research Centre (ARC). Retrieved from http://www.lse.ac.uk/asiaResearchCentre/_files/ARCWP61-Swain.pdf.
[21]
USDA RMA (US Department of Agriculture, Risk Management Agency). (2018). Improvements to Crop Insurance continue in 2018. Retrieved from https://www.rma.usda.gov/news/2017/12/2017accomplishments.pdf.
[22]
WFP (World Food Program). (n, d). Weather Index-based Insurance in Agricultural Development: A Technical Guide. Publications. Retrieved from https://www.wfp.org/content/weather-index-based-insurance-agricultural-development-technical-guide.
[23]
Wikipedia. (n, d). Agriculture in Bangladesh. Retrieved from https://en.wikipedia.org/wiki/Agriculture_in_Bangladesh.
[24]
Wikipedia. (n, d). Crop Insurance. Retrieved fromhttps://en.wikipedia.org/wiki/Crop_insurance.
Browse journals by subject