Crop Insurance as a Risk Management Strategy in Bangladesh

disastrous affect as such mode of lending is free of documentary (paper) requirement and
intricacies as required by Govt sources.
Meanwhile, they were almost ignorant of Crop Insurance but upon briefings from the
facilitator NGO of this study and discussion they are convinced that it would be a good policy
to adopt to recover from crop damage out of aforesaid disasters. Moreover, they prefer NGOs
over other organizations in operating the crop insurance policy as they belief NGOs are more
transparent and cooperative. With respect to monthly premium, marginal farmers expressed
their ability to pay 50 tk. while the others (medium and high) replied they might pay higher
premium based on the compensation package they would receive per acre after disaster. With
crop insurance in operation and adopted by them, these farmers are willing to go for more
profitable cropping even it is riskier.
6.3.3 FGD in Sunamganj
Unlike the two other study sites this area is relatively less populated and most farmers have
space around their house to utilize for agricultural purposes, therefore agricultural activities
are taking place both in the fields and homesteads. The farmer groups in this area report that
being in the low lying area i.e. haor they are not able to produce more than one crop in a year
i.e. they cultivate only in the dry season. However, this only yearly cultivation is affected
now a days due to unfavorable climatic behaviors. Prolonged water logging to their fields
debar them from in time cropping which impact the production and harvest. Another
important observation of them is excessive rainfall and hailstorms in the recent years that
occasionally damage their crops. All these are happening due to climate change, as they
believe. They also mentioned that the dry season are gradually commencing at a delayed time
and there are late rainfalls that damage just showed crops. They also notice drought in some
years. All these combined, have been impacting their traditional cropping practices badly.
Figure 6.20: Focus Group Discussion in Tahirpur, Sunamganj
In coping with these disasters, some farmers of medium and large categories mentioned they
go for either bank loan or NGO assistance (most medium farmers rely on NGO assistance)
whereas the lower category farmers report that they depend on local Mohajan. They believe
that the government measure in assisting them in the face of disaster is inadequate and there
is a need for alternative arrangement to coup with such events.
Though most of the farmers are unaware of crop insurance they are familiar with life
insurance policy. They suppose crop insurance policy with the NGO assistance can be a
viable approach for them to cover the disaster risk if the premium amount becomes nominal.
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