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Demand for weather index insurance: evidence from Indian cotton farmers

Reddyprasanna Diyyala et al.

Journal of Agribusiness in Developing and Emerging Economies2026https://doi.org/10.1108/jadee-08-2024-0275article
ABDC C
Weight
0.50

What the paper says

Purpose Adverse climatic conditions have significantly impacted agricultural production in India. To manage climate risk, weather index insurance (WII) is emerging as a useful tool to transfer risk. However, despite the potential advantages, the adoption of weather-based insurance remains low. Thus, this study aims to examine the factors influencing farmers’ willingness to pay (WTP) for WII. Design/methodology/approach A cross-sectional survey was conducted among 350 cotton farmers in the Virudhunagar district, selected through a multistage sampling approach, incorporating simple random sampling. Data were collected through personal interviews using a pre-tested questionnaire. The logit model is used to analyse how socioeconomic variables, risk aversion (determined using the multiple price list experiment) and risk perception (analysed using a risk matrix) affect weather insurance adoption. Findings Results show that 65% of the surveyed households are willing to participate in WII. Risk aversion and risk perception are positively and significantly associated with insurance uptake. Education, annual income, access to credit and weather-related yield loss also have a significant positive correlation with WTP. However, gender, family size, and access to irrigation are negatively associated with WTP. Research limitations/implications Future studies could be enhanced by including more diverse farm areas and considering other influential factors. Originality/value These findings can assist insurance companies and policymakers in understanding farmers’ risk behaviour and promoting the adoption of WII to improve farmers’ climate resilience.

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https://doi.org/https://doi.org/10.1108/jadee-08-2024-0275

Or copy a formatted citation

@article{reddyprasanna2026,
  title        = {{Demand for weather index insurance: evidence from Indian cotton farmers}},
  author       = {Reddyprasanna Diyyala et al.},
  journal      = {Journal of Agribusiness in Developing and Emerging Economies},
  year         = {2026},
  doi          = {https://doi.org/https://doi.org/10.1108/jadee-08-2024-0275},
}

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Evidence weight

0.50

Balanced mode · F 0.40 / M 0.15 / V 0.05 / R 0.40

F · citation impact0.50 × 0.4 = 0.20
M · momentum0.50 × 0.15 = 0.07
V · venue signal0.50 × 0.05 = 0.03
R · text relevance †0.50 × 0.4 = 0.20

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