Agriculture Insurance: A Step towards Agricultural Sustainability and Self-Reliance

Abstract

Agriculture has always been the backbone of rural livelihoods in developing economies, yet it is increasingly exposed to multiple risks arising from climate variability, market uncertainties, and natural calamities. These vulnerabilities often result in income instability, indebtedness, and reduced investment capacity among farmers, thereby threatening long-term agricultural sustainability. In this context, agricultural insurance has been emerged as a critical risk management instrument aimed at protecting farmers against unforeseen losses and enhancing their economic resilience. The present study examines the role of agricultural insurance as a strategic tool for promoting agricultural sustainability and self-reliance. It analyzes how crop insurance schemes contribute to income stabilization, risk mitigation, and improved access to institutional credit, while encouraging the adoption of modern agricultural practices. Using secondary data from government reports, policy documents, and existing empirical studies, the research evaluates the performance of agricultural insurance in strengthening farmers’ capacity to withstand production and climate-related shocks. The study highlights the key challenges which constrain the full potential of insurance schemes. The paper concludes with policy recommendations with the aim to improve scheme design, implementation efficiency and farmers participation to ensure inclusive and resilient agricultural development.