In Bangladesh, agriculture could be a major sector of the
economy that contributes virtually twenty % of the overall GDP within the
economy and virtually 1/2 the proletariat engages during this sector (Ahsan,
2011). however over the last twenty nine years natural hazards injury average
half dozen.4 % of the national crop production in each year (World Bank, 2010).
On the opposite hand, Bangladesh is currently world’s fifth country in natural
disaster index and it loses its crop production as a result of natural
disaster. And it’s calculable that from 2005 to 2050 agricultural GDP are
decrease by three.1 % annually. Besides, it’s projected that 4°C increase in
temperature can decrease the rice production by seventeen % and wheat
production by sixty one per cent in Bangladesh (Mainuddin et al., 2011). thus
agriculture is at an excellent risk as a result of global climate change that
adversely affects the agricultural production (Agarwala et al., 2003).
Agriculture sector in Bangladesh in the main depends on seasonal
characteristics and environmental condition variables like temperature and
precipitation. However, inordinateness of these environmental condition
variables damages crop production and create agriculture as a risky business.
As a result poor farmers have minimum capability to adapt this risk. thus poor
farmer goes to a lot of vulnerable scenario as a result of agriculture is that
the solely thanks to survive and scale back financial condition. 

As agriculture is a vital sector, it’s essential to make up
a swish agricultural productivity to confirm food security for the total
population and to cut back financial condition from the country. Weather
connected hazard like flood, rainfall, draught, water surge and cyclone area
unit main reasons for decreasing crop production. the rise in unsure climate
condition results in increase the volatility of crop yields and farms financial
gain conjointly.

In developing countries, farmers meet with the multiple
threats like flood, plant diseases, drought and then on (O’Brien et al., 2004).
Those hazards create vulnerable scenario in crop production. To endure the
vulnerable scenario farmers ought to take adaption strategy and may have sex
with adaption program (Adger and Vincent, 2005). Weather connected disasters
directly affects agriculture and agriculture dependent bread and butter in the
main poor farmers of the country (BalmaIssaka et al., 2016). thus it’s
considerably essential to shield the farmer from the financial loss that incur
from the unsure climate condition (World Bank, 2011). The situation of
agricultural sector is hampered by natural hazards and facing lots of issues.
thus there’s AN urgency to supply support to shield the farmer from the adverse
scenario of global climate change and crop insurance is one among the most
effective solutions to shield from this unsure condition. as a result of crop
insurance not solely secure the farm financial gain however conjointly it
encourages farmers for additional cultivation within the next year even have a
nasty expertise within the last year once they got minimum value for the loss
of production (Bhende, 2002; Raju and Chand, 2008). Besides farmer might visit
develop innovative technology for unsure condition as a result of they gets
compensation just in case of loss (Hazell, 1992). Miranda and Glauber (1997)
exposed that crop insurance is a lot of necessary to unsure climate conditions.
several developed and rising country within the world particularly USA,
Australia, Canada, Bharat and Japan conjointly starts crop insurance to reduce
the loss connected with weather risk in agriculture sector.

developing countries moreover as Bangladesh have conjointly started crop
insurance as pilot program to require the expertise from the developed ANd
rising nations as an adoption tool of weather risk. however generally, the
famers of Bangladesh area unit a lot of concern concerning their current
outcomes instead of future risk. As a result a lot of risky investment in
agricultural production depends on farmer’s angle to adapt weather induced  crop insurance programs. However, as a result
of restricted financial gain, farmers might feel burden to pay the premium of
insurance. during this consequence, author feels to research farmer’s angle and
temperament towards adaption of crop insurance to cut back weather risk in
South-west region of Bangladesh.




In recent years, crop insurance may be a growing issue in
East Pakistan to cut back farmer’s loss that is occurred by natural disaster in
crop production. the govt. of East Pakistan has introduced crop insurance in
1977 to cut back the loss of agriculture production however this has been stopped
in 1996 attributable to some issues. however currently government similarly as
several national and international NGOs starts crop insurance to draw in the
concentration of poor farmers to attenuate the loss of adverse climate scenario
in crop production. Like ADB (Asian Development Bank) takes a pilot program for
crop insurance in {bangladesh|Bangladesh|People’s Republic of East
Pakistan|Bangla Desh|East Pakistan|Asian country|Asian nation} that is
supported by Japan Fund for impoverishment Reduction with $2 million and Japan
region Exploration Agency and therefore the Bangladesh government with $0.5
million (Uddin et al., 2014). however farmers in East Pakistan aren’t awake to
this kind of insurance. in the main they need a imprecise concept crop insurance
isn’t therefore effective for his or her agricultural production and that they
suppose that the premium is expensive for them. Poor farmers suppose that the
premium of crop insurance is a further value that will increase cost
additionally. In recent times, crop insurance as a pilot program several NGOs
give the premium on the behalf of the farmers for making farmer’s awareness and
disposition. Taking these problems into consideration this study tries to guage
the poor farmer’s disposition to participate in crop insurance and to research
however the difference of crop insurance affects the speed of modification in
agricultural output in East Pakistan.









In country of Asian country, agriculture is that the main
supply of employment wherever employment rate is nearly 8o p.c of the
agricultural population further as agriculture contributes one quarter of the
full gross domestic product (Akter et al., 2009). On the opposite hand the
agriculture sector of Asian country is answerable for feeding virtually 151.5
million individuals of the country that is a pair of.54 p.c of the world’s
population (MOA, 2012).  

The annual crop-production in Asian country is especially
divided into 2 seasons, that is thought as kharif and robi. Kharif season is
characterized by high temperatures, rain and humidness (Mainuddin et al.,
2011). This season covers the months from period of time to period of time and
also the rain and soil storage provide wetness that is extremely a lot of
effective to support the rain fed crops. Like Aus rice, Aman rice square
measure the most crops during this season. The robi season covers from period
of time to period of time and this season starts with sunny and dry weather
(Mainuddin et al., 2011). it’s additionally known as the cold season. The crop
production of this season for the most part depends on groundwater and
irrigation. Like Boro rice is that the main crop in robi season.



Crop production is within the grip of weather (Walker and
Sarkar, 1996). As a result weather is that the just one component which may
amendment everything in agricultural production. In recent times,
Climate-related disaster like floods, cyclones, storm surges and droughts
happens a lot of oftentimes and severe in People’s Republic of Bangladesh. A
historical knowledge shows that concerning 174 natural disasters occur in
People’s Republic of Bangladesh from 1974 to 2007 that specially harm on crop
production (Uddin et al., 2014). therefore weather may be a key consider
agriculture production and each year one % land is shrinking by erosion,
subsidence and water level rise (Hellmuth et al., 2007). As People’s Republic
of Bangladesh may be a low-lying and densely inhabited country it’s a lot of
vulnerable than others. principally climate connected disasters have the
foremost extreme impact and cause most quantity of damages directly on
agriculture, agriculture dependent living, resources, infrastructure and
indirectly on economic process of the country (Ghazanfar et al., 2015).

On the opposite hand, it’s foreseen that the worldwide
temperatures square measure currently a minimum of one °C on top of from the
pre-Industrial levels and then the long run temperatures square measure doable
to face important rises (Adiku et al., 2017). therefore it’s clear that if a
rustic attempt tod} be an industrial country it creates warming that is
extremely abundant dangerous for agriculture sector.

 Besides, People’s
Republic of Bangladesh is heavily flood and storm prone space that happens a
lot of oftentimes. it’s conjointly foreseen that by the year of 2030, 14.3 you
extra space of People’s Republic of Bangladesh would become severe susceptible
to floods and therefore the existing flood-prone areas can face higher levels
of flooding in future (Dowla, 2009). On the opposite hand, fifty eight sturdy
storms attack in between 1960 and 2010 and that has teared down farms and
wiping out crops. Like Cyclone Sidr, that smashed into People’s Republic of
Bangladesh in 2007 and harm assets, infrastructures and agricultural production
specially North American nation $438 million loss in agricultural sector in
South-west region that is almost ninety fifth of the full loss of all sector
(Uddin et al., 2014). therefore agriculture is of course sensitive to climate
circumstances, and it’s among the foremost vulnerable sectors to the risks of
worldwide climate rework (Reilly, 1995).


Adaptation may be a central issue of any policy response to
temperature change shock and vulnerability assessment (Fankhauser, 1996; Smit
et al., 1999; Mizina et al., 1999; Reilly and Schimmelpfennig, 1999). On the
opposite hand temperature change creates not solely future transformation of
mean scenario, however additionally transforms within the year-to-year (Hulme
et al., 1999; Wandel and Smit, 2000). That’s means poor farmer fall in peril
after they cultivate crop. therefore the farm production and farmer’s financial
gain reduces (Adger and Vincent, 2005). As a result it’s significantly
essential to shield the farmers from their losses in their production owing to
environmental condition amendment (World Bank, 2011). Therefore, to live
through this example there’s essential to produce backing so agricultural
sector run swimmingly even in unsure condition. 

In this regards, there area unit 2 varieties of measures one
is structural and different is non-structural to scale back the loss in
agriculture sector in East Pakistan. however structural measures area unit less
effective to disaster risk management than non-structural measures. Crop
insurance is one amongst the non-structural measures that use as a tool for
reducing loss in agriculture sector (Ahsan, 2011). Crop insurance is a lot of
essential to unsure climate condition and variability of climate ends up in a
lot of regular and excessive ruinous weather events. personal insurance firms
attempt to address the crop and property injury owing to hazards as droughts,
floods and different climate-related actions (Smit and Lenhart, 1996).
therefore there’s little question that crop insurance is one amongst the
simplest money tools that works in unsure condition.


World agriculture is facing the severe issues as a result of
temperature change likewise because it cannot give enough prime quality food
for the planet population. in step with the Food and Agriculture Organization
(FAO), globally, agricultural output could be a have to be compelled to
increase by one.6 p.c annually till 2015 and one.4 p.c till 2030 (BMELV, 2008).
As a result, it’s clear that there’s a powerful dependence of agriculture on
the natural setting and that makes it risk prone sections (Kurukulasuriya et
al., 2006). In Asia, geographic area, geographical {area|geographic
area|geographical region|geographic region} and also the Caribbean a part of
the planet have started crop insurance as associate adaptation tool for weather
evoked risk in agriculture sector there are some countries and plenty of
alignment like European nation, European Economic Community, and Japan give aid
to them (Zant, 2008). 

In several developing countries, the govt. and NGOs have
started crop insurance as a primary program for the advantage of the farmers
and save agricultural output to insure the national food security of those
nations (Clarke et al., 2012). In India, farmers upset some underwriter as
associate experimental proof against agricultural risk and that they get far
more motivation to extend investments in higherrisk for higher-return in
agricultural production and wherever crop insurance has been on the market
since 2004, 12.7 million farmers bought the insurance between 2007 and 2011
(Cole et al., 2013). On the opposite hand, several African countries strictly
introduce agricultural insurance for the poor farmers over the previous couple
of decades and nearly one,000,000 farmers in Africa ar engaged through
governments, Non-Governmental Organizations (NGOs) and industrial unsubsidized
programs (Greatrex et al., 2015).


Although crop insurance is one in all the most effective
policy to adapt weather risk and to scale back venerability there’s hardly
offered in risk sharing establishments. As a lead to developing countries like
People’s Republic of Bangladesh farmers would like other ways to defend
themselves from weather risk (Zant, 2008). in keeping with International Bank
for Reconstruction and Development report in People’s Republic of Bangladesh,
there’s little variety of agriculture insurance programs nowadays and a few
NGOs operate this styles of programs like eutherian mammal insurance and crop
insurance theme (World Bank, 2010). Zant (2008) additionally other that
developing country cannot take this opportunities wide than the developed
nations. however currently several countries attempt to run this insurance
program. International Bank for Reconstruction and Development states that
quite hundred countries deals with crop insurance theme to scale back
vulnerability of the poor farmers (World Bank, 2010). 

In 1977, Sadharan Bima Corporation (SBC) of People’s
Republic of Bangladesh has been introduced crop insurance as a pilot program
for the Aus, Aman and Boro rice, jute, wheat and sugarcane and fifteen,420
farmers were lined by this program. however because of lack of support, expertise,
observation and general downside this project didn’t run swimmingly. As a
result this project was enclosed 1996 with nearly five hundred memory loss
(Mainuddin et al., 2011). 

As well as several NGOs starts crop insurance for the poor
farmers like Brac is that the initial non-government organization in People’s
Republic of Bangladesh that introduce crop insurance program and to create the
program effective Brac sit down with inexperienced Delta insurance underwriter
restricted and each sign a deal for the betterment of the farmers and launch
the chance reduction policy together (Rahman, 2016). On the opposite hand, IFC
could be a member of the planet Bank cluster that sign with People’s Republic
of Bangladesh’s leading non-public insurance underwriter inexperienced Delta
Insurance Co Ltd to develop a crop insurance as associate adaptation tool to
guard the agricultural economy they need recently organized a workshop titled
‘Agriculture Insurance in Bangladesh’ to form awareness on agriculture
insurance among the farmers and take a look at to include crop insurance into
the agricultural sector of Bangladesh (World Bank, 2011).

 Government plays a
very important role to develop agriculture insurance. typically government
subsidies the insurance programs that is currently a typical adaptation tool in
several countries (Ke et al., 2011). Crop insurance exists in some countries,
however with government grant. Like People’s Republic of Bangladesh have signed
with ADB to launch crop insurance program for $2.5 million with the assistance
of Japanese organization and left quantity subsidies by People’s Republic of
Bangladesh government (Hossain, 2013). On the opposite hand, in us, government
offer support to the farmers within the type of premium subsidies (a share of
total premium) with legal amendments started in 1980 (Gardner and Kramer, 1986;
Glauber, 2004; Barnett, 2007). thus a well-planned crop insurance system will
save an oversized variety of poor farmers from weakness and uplift their
confidence to extend crop production (Bhende, 2002). however lacking of
consciousness among farmers could be a huge challenge for the applying of the
theme (Cain, 1981). On the opposite hand government programs and personal
insurance ar formal replies to the risks related to temperature change and
influence farm-level risk management ways (Smit and Skinner, 2002). So,
non-public insurance play a significant role in adaption to climate associated

In Asian countries like People’s Republic of Bangladesh,
farmers ar self-insured and that they share their risk among themselves
moreover as informal risk copping tools like savings, loans and gifts ar less
utilized in the absence of well-established crop insurance market and also the
formal insurance markets aren’t nearly disappear and their operate isn’t clear
among the farmers (Clarke et al., 2012). On the opposite hand while not crop
insurance business banks ar indifferent to produce loan to the farmers for his
or her production purpose (Zant, 2008). 
Crop insurance in People’s Republic of Bangladesh isn’t a property
method for the poor farmers as a result of it’s ancient system. however
recently {a few|a couple of|a variety of|some|many} number of weather-index
insurance starts work. In ancient system, farmers ar remunerated for the
witnessed losses on their production (Hazell, 1992). As a result there occur
adverse choice, financial loss, and insurance fraud that incur higher price for
the insurance firm of detection dishonest behavior by farmers create these
insurance merchandise additional expensive to produce. This downside is
considerably reduced by index insurance wherever the payout is predicated on a
tamper-resistant index like total days of utmost temperatures or monthly rain.
Therefore, index insurance lightens issues concerning data issues, farmers’ hid
actions and dear verification prices (Clarke et al., 2012). Countries like
Bharat, African country and Nyasaland even have started index-based crop
insurance targeted at poor farmers.