A.G. Adeeth Cariappa, Darshnaben P. Mahida, Priyanka Lal and B.S. Chandel
The purpose of this paper is to identify the correlates of crop insurance adoption and estimate the impact on debt and farm income.
Abstract
Purpose
The purpose of this paper is to identify the correlates of crop insurance adoption and estimate the impact on debt and farm income.
Design/methodology/approach
The authors used nationally representative data from National Sample Survey Office (NSSO), which consisted of 35,200 farming households. Logit and propensity score matching (PSM) (nearest neighbor, caliper and kernel matching) techniques were used.
Findings
With only around 5% of households insuring their crops and 87% of them not receiving claims, crop insurance in India has failed. Logit model estimates of correlates of adoption indicated that households with larger family size, lower social group, less education, lower standard of living and poor were more likely to be left out of the ambit of crop insurance. Further, propensity score estimates suggested that households with access to crop insurance had significantly lesser outstanding debt with positive effect on input costs and crop income. The authors’ results were in contrast to the risk balancing theory.
Practical implications
Results of our work encourage us to rethink and restructure the crop insurance policy design in India. With credit and insurance markets interlinked by design and as the risk balancing in the farm business found absent, policies to strengthen both the markets are the need of the hour. To encourage more farmers to take up crop insurance, revenue-based indemnity calculation could be tried in India.
Originality/value
Impact estimates from three different algorithms of matching were compared and tested for robustness. Consistent average treatment effect on treated (ATT) was considered for interpretation and policy implications. Since the data are from a nationally representative survey, results are believed to be of extreme value to policy makers and insurance providers as it can be generalized.
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Prabhjot Singh, Sushant Samir, Kamal Kumar and Jagdeep Singh
This study has been carried out in dairy product manufacturing industry of Northern India to judge the significance of supply chain strategies viz. cost reduction and optimization…
Abstract
Purpose
This study has been carried out in dairy product manufacturing industry of Northern India to judge the significance of supply chain strategies viz. cost reduction and optimization strategies toward performance improvement and mediator effect of strength and opportunity between strategies and performance parameters.
Design/methodology/approach
Questionnaire survey has been performed to justify their role toward performance improvement. Structural equation modeling, descriptive statistics, hierarchical regression and clusters and partial least square-structural equation modeling has been applied for ascertain the benefits occurred.
Findings
Results indicated that strength (success factors of strength identified from literature) is the significant mediator than opportunity (success factors) for enhancing performance of organization. Small incremental improvements and 5S activities are highly important cost reduction strategies for enhancing performance of supply chain strategies. Supply chain strategies significantly improve the quality of milk in the industry under study. The customer has got high-quality product after implementing supply chain strategies. Right-time delivery of product is only possible if failure modes are analyzed thoroughly. Reliability of performance parameters is 88% which signifies that high benefits are achieved by implementing cost reduction and cost optimization strategies of supply chain concept. Processing of milk is significantly improved after taking combined effect of processing and delivery of product.
Originality/value
This paper helps both academics and managers to gain a better understanding of this question by considering the role of supply chain strategies implementation practically through a standard procedure.
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Gautami Verma, Naresh Singla and Sukhpal Singh
The global outbreak of COVID-19 and its subsequent varied impacts on different economic activities necessitate to examine its disruptions and impacts on livestock sector in India…
Abstract
Purpose
The global outbreak of COVID-19 and its subsequent varied impacts on different economic activities necessitate to examine its disruptions and impacts on livestock sector in India due to its recently surging potential as an unrivaled alternative to boost farmer’s income.
Design/methodology/approach
The studies for review were identified through search in different databases using relevant keywords. Only full text papers written in English language were reviewed. The review was organized and streamlined using Covidence software.
Findings
Analysis of the literature reveals adverse effects of COVID-19 on functioning of input and output stages of livestock supply chains. This has resulted in upstream and downstream economic losses that affect livelihoods of the producers.
Research limitations/implications
Scale of unprecedented crisis due to COVID-19 pandemic requires creative policy decisions to make livestock production systems robust, resilient and sustainable. Organized production systems are required to integrate with livestock-tech startups to modernize their supply chains, whereas local supply chains are required to reorient with government’s intervention in terms of developing on-farm production and postproduction processing facilities.
Originality/value
Although there exist some evidence on COVID-19-related impacts on livestock sector of India, but an integrated review of evidence on COVID-19 related disruptions at all the stages (from input supply to marketing) of livestock supply chains was missing.
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Aditya Korekallu Srinivasa, K.V. Praveen, Subash Surendran Padmaja, M.L. Nithyashree and Girish K. Jha
This paper examines whether farmers' knowledge of the minimum support prices (MSPs) affects farm-gate prices. MSP is the minimum guaranteed price for agricultural commodities…
Abstract
Purpose
This paper examines whether farmers' knowledge of the minimum support prices (MSPs) affects farm-gate prices. MSP is the minimum guaranteed price for agricultural commodities announced by the Government of India for 24 commodities. Most farmers in India prefer to sell their produce at the farm-gate due to a small marketable surplus and hence do not directly benefit from MSP. The authors test the common argument in the political discourse that if farmers have knowledge of MSP, then they can bargain with traders during the farm-gate transaction and demand a better price close to MSP.
Design/methodology/approach
The authors use matching methods to examine the impact of knowledge of MSP on farm-gate prices.
Findings
Using nationally representative data, the authors show that there is no empirical evidence that the knowledge of MSP of the crops leads to higher bargaining power and better farm-gate prices.
Practical implications
Price information (MSP in this case) alone cannot improve the bargaining power of farmers and result in a better price realization. As a safety net, MSP fails in the absence of procurement of products by the government. This also raises the question of the equitability of the price support system in India and calls for a rethink of the MSP policy.
Originality/value
This study is the first of its kind to examine the anchoring effect of knowledge of MSP on farm-gate prices using a nationally representative dataset.
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Rahul S. Mor, Arvind Bhardwaj and Sarbjit Singh
The purpose of this paper is to explore the key performance indicators (PIs) that serve as a decision support tool in case of dairy supply chain practices and to analyze their…
Abstract
Purpose
The purpose of this paper is to explore the key performance indicators (PIs) that serve as a decision support tool in case of dairy supply chain practices and to analyze their interactions in the context of Indian dairy industry sector. A total of 11 PIs have been identified through the literature review and the opinions of an expert team consisting of managerial and technical experts from dairy industry and academics.
Design/methodology/approach
A solution methodology based on the interpretive structure modeling (ISM) technique is used to analyze the interactions among PIs and to propose a structural model. The developed model not only helps in understanding the contextual relationship among the PIs, but also in determining their interdependence to assess the supply chain performance in dairy industry. Further, the importance of PIs has been determined based on their driving and dependence power by using MICMAC analysis.
Findings
The ISM-based model suggests four PIs at first level, three PIs at second level, one PI at third level as well as one PI at fourth level and two PIs at fifth level. Model allocates to the effective information technology, brand management, responsiveness in shipment and accuracy and a control over wastages as the key PIs in the dairy industry sector. The effective traceability systems, cold chain infrastructure, quality management and the support for technological innovations are the next major PIs. There exists no autonomous PI in MICMAC analysis which proves the importance of identified PIs in the case study.
Research limitations/implications
The proposed model is an attempt to capture the dynamics of milk processing sector and to incorporate all relevant constraints related to internal and external environments that would significantly improve the supply chain performance in the dairy industry.
Practical implications
The model developed in this study has been tested in the cooperative milk processing units based in India and also discussed with the experts from academics. This work may help practitioners, regulators and dairy industry professionals to focus their efforts toward achieving high performance by the effective implementation of the identified PIs.
Originality/value
In this study, 11 PIs are considered. Interactions among PIs are evaluated with the help of the ISM matrix. Out of the 11 PIs, six demonstrate both strong driving and dependence power as explained in the MICMAC analysis.
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Huanan Sun, Chenhao Li, Qian Zhang and Yanling Zhu
Through this study, the aim is to provide reference for the improvement of CEO related theories, the reform of internal governance mechanisms and compensation systems in…
Abstract
Purpose
Through this study, the aim is to provide reference for the improvement of CEO related theories, the reform of internal governance mechanisms and compensation systems in enterprises, and ultimately contribute to economic and social development and the achievement of dual carbon goals.
Design/methodology/approach
In the context of accelerating the implementation of the “dual carbon” goal and promoting sustainable economic and social development, this paper builds a panel data model based on the panel data of 31 provinces in China from 2011 to 2019 to empirically test the impact of CEO stability on green innovation and total factor productivity of enterprises.
Findings
The results show that CEO stability has a positive role in promoting enterprise total factor productivity and green innovation and enterprise green innovation also has a positive role in promoting total factor productivity; Heterogeneity testing found that CEO stability has no significant impact on green innovation in state-owned enterprises. Corporate green innovation has a partial mesomeric effect between CEO stability and total factor productivity; The proportion of independent directors has a negative moderating effect on CEO stability and corporate green innovation, while equity incentive has a positive moderating effect on the relationship between CEO stability, corporate total factor productivity and green innovation.
Originality/value
First, it develops the research on CEO stability and its economic consequences. Second, it expands the impact of CEO stability on heterogeneous enterprises. Third, provides new ideas for the reform of internal governance mechanism and salary system of enterprises.
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Francisca Nathalia de Sousa Leite, Eduardo Rodrigues de Castro and Henrique Ryosuke Tateishi
Constrained input use and lower productivity of rural establishments may be associated with restricted or concentrated access to financial resources, especially in developing…
Abstract
Purpose
Constrained input use and lower productivity of rural establishments may be associated with restricted or concentrated access to financial resources, especially in developing countries. Meanwhile, agricultural activity entails risks associated with the volatility of net cash flows and external events, which may discourage riskier but higher return investments (e.g. technology). As rural credit can alleviate the former, and rural insurance may help alleviate the latter, the combination of both policies might endorse each other. The purpose of this study is to analyze the use of rural credit and rural insurance policies with respect to productivity and crop area, in São Paulo state, Brazil, using farmer's microdata from two surveys realized in 2007/08 and 2016/17.
Design/methodology/approach
This study uses propensity score matching and the entropy balance approaches in a complementary way. This study compared three policy treatments – rural credit, rural insurance and both policies combined, against establishments that received neither one. The analysis considered sugarcane, grain and grape crops separately and employed farmer's microdata. Moreover, the analysis was stratified into two categories: establishments owned by family farmers and those that did not.
Findings
Rural credit policy is related to higher productivity and larger cultivated area for grains and only to larger area for grape crops in the last analyzed period (2016/17). Rural insurance, as a unique policy or combined with credit, is related to higher productivity and cultivated areas, for all analyzed crops, only in the second period (2016/17), as the policy became more accessible to farmers. Heterogeneity regarding crops and farmers might influence the effectiveness of these policies. Despite rural insurance being related to a better performance regarding the outcome variables, it still reaches a small share of farmers, especially when combined with credit.
Originality/value
Many studies about the effectiveness of rural credit in Brazil have been conducted throughout the years, while there have been fewer studies regarding rural insurance since it became an important policy in the mid-2000s. However, few studies have conducted an analysis comparing its individual and interactive influences, with such level of disaggregation, on a farm-level database, considering the heterogeneity of the data and the different categories of farmers.
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Aries Susanty, Nia Budi Puspitasari, Heru Prastawa and Stellya Veronica Renaldi
This research primarily aims to find and analyse the interaction among success factors for improving the performance of Indonesia’s dairy milk supply chain. Further, this research…
Abstract
Purpose
This research primarily aims to find and analyse the interaction among success factors for improving the performance of Indonesia’s dairy milk supply chain. Further, this research aims to formulate the right policies for improving the performance of the chain based on the success factor that belongs to cause groups.
Design/methodology/approach
The paper analyses 10 success factors for improving the performance of the Indonesian dairy supply chain with the decision-making trial and evaluation laboratory (DEMATEL) method and analyses the Delphi method to formulate the right policies for improving performance.
Findings
There are four important influencing factors that directly impact the overall system, i.e. the number of dairy cattle import, national milk demand, the total number of dairy farmers and the number of dairy cattle ownership or herd size. Several alternative policies have been designed by several experts according to the influencing factors, i.e. the government assists in the procurement of imported cattle, provides financial assistance to farmers in the form of low-interest financing, improves the partnership system between farmers and dairy cooperatives, provides a reward system for the farmers and increases the level of formality of contract between the farmers and cooperatives.
Research limitations/implications
Interrelationships of each success factor and the most important influencing success factors could not be generally determined because it depends on the point of view of the experts. Future research can apply the success factors proposed by this research to the different dairy milk supply chain. Then, this research used only nine experts for formulating alternative policies. Future research may repeat this method using multiple experts to justify the validity of the research. Moreover, this research only explored 21 success factors of the increase in the performance of the Indonesian dairy supply chain. Future research should consider not only the supply side and number of dairy cattle but also several success factors from the causal relationship diagram in the broader dairy milk supply chain.
Practical implications
This research provides essential insights for policymakers, as they have to understand and evaluate the success factors before formulating several alternative policies.
Social implications
The research has revealed that the right alternative policies can be designed, as the causal factor has been known.
Originality/value
This research contributes to applying a combination of causal relationship diagram of System Dynamic and DEMATEL method as a qualitative and quantitative method in one integrated way through performance dairy supply chain analysis. As a result, this research draws a policy for the dairy supply chain referring to the success factor as a cause for the low performance of the Indonesian dairy supply chain.
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Aimro Likinaw, Arragaw Alemayehu and Woldeamlak Bewket
The purpose of this paper is to investigate the vulnerability of smallholder farmers to climate change in northwest Ethiopia.
Abstract
Purpose
The purpose of this paper is to investigate the vulnerability of smallholder farmers to climate change in northwest Ethiopia.
Design/methodology/approach
To achieve this aim, data was collected from a survey of 352 households, which were stratified into three groups: Lay Gayint (138 or 39%), Tach Gayint (117 or 33%) and Simada district (97 or 28%). To gain a deeper understanding of the vulnerability of these households, two approaches were used: the livelihood vulnerability index (LVI), consisting of 32 indicators, and the socioeconomic vulnerability index (SeVI), containing 31 indicators. Furthermore, qualitative data was obtained through focus group discussions conducted in six randomly chosen groups from the three districts, which were used to supplement the findings.
Findings
Both methods indicate that Simada is the most vulnerable district, followed by Tach Gayint and Lay Gayint. According to the SeVI approach, Simada district showed the highest level of sensitivity and exposure to climate-related hazards, as well as the lowest score for adaptive capacity. However, using the LVI approach, Simada district was found to have the highest sensitivity to climate effects and exposure to climate-related hazards, along with a higher adaptive capacity than both Lay Gayint and Tach Gayint districts.
Originality/value
Although there are numerous studies available on the vulnerability of farmers to climate change, this particular study stands out by using and contrasting two approaches – the LVI and the SeVI – to assess the vulnerability of households in the study area. Previous research has indicated that no single approach is sufficient to evaluate climate change vulnerability, as each approach has its own strengths and limitations. The findings of this study have significant implications for policymakers and development practitioners, as they can use the results to identify the households that are most vulnerable to climate change. This will enable them to design adaptation options that are tailored to the specific needs of each community and that will effectively address the risks of current and future climate change.
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Pankaj Singh and Gaurav Agrawal
Agriculture insurance is the panacea for the farming community. Many policy interventions were implemented for stimulating agriculture insurance access to farmers in India…
Abstract
Purpose
Agriculture insurance is the panacea for the farming community. Many policy interventions were implemented for stimulating agriculture insurance access to farmers in India. However, access to agriculture insurance constantly remained one of the major challenges to Indian policy planners. The goal of the present paper is to explore current policy interventions in the area of agriculture insurance in India.
Design/methodology/approach
The present paper reviews and analyzes the evidence literature through a content analysis method on development and performance analysis perspective of existing agriculture insurance schemes in India.
Findings
Agriculture insurance is a significant risk management policy, but this is not easily reachable to the majority of farmers in India. The government of India introduces a novel agriculture scheme every decade, but every crop insurance scheme was inconsistent and ineffective owing to operational defects. Agriculture insurance in India is still developing in terms of coverage, scope, and exposure, but farmers' dissatisfaction about agriculture insurance turned out to be a negative word of mouth. Insurance illiteracy and farmers' preference for agriculture relief payments are the main reasons for limited access to agriculture insurance. The current crop insurance schemes are improperly operated because of implementation issues at the state level.
Research limitations/implications
This paper will be useful for researchers and academicians to analyze the past and present status of crop insurance in India.
Originality/value
The paper is the unique work of the authors as it has attempted to present India's journey with agriculture insurance. An effort is made in the present study to provide a comprehensive and holistic developmental and performance analysis perspective of agriculture insurance in India.