AN EMPIRICAL EVIDENCE OF THE EFFECT OF PREMIUM AND PREMIUM SUBSIDY ON FARMERS COVERAGE UNDER CROP INSURANCE

Agriculture sector is the prime mover of state economy of Odisha. It drives the state economy towards the inclusive and sustainable development. Odisha is one of the states in which risk in crop production is very high due to variability in rain fall, low resources base of farmer, frequency occurrence of natural calamities etc. In such a risky environment of the state there is a greater need for crop insurance in the event of crop failure, the insured farmer will receive indemnity to cover their loss. This article examines the effect of premium and premium subsidy on farmers' coverage in crop insurance in Odisha by using Log linear model to measure the effect of premium and premium subsidy on the farmers coverage. We have analysed the data with the help of eview and do the residual test and found that the model is suitable for the study. Our empirical results shows that there is significant effect of premium and premium subsidy on farmers coverage under crop insurance both kharif and rabi season.