Agriculture Insurance for Sustainable Development in Sri Lanka Evidence from Kurunegala District

Abstract

Going green mainly focus on the reducing the pollution and practicing the recycling that can lead to more environmentally friendly and ecologically responsible decisions and lifestyles to protect current and future generations. Since it leads to create a sustainable earth for each and every one, paying attention to the concept is very much needed in the present world. Therefore it is important to encourage the agriculture sector within a country. The objective of this study is to identify the current level of awareness of Agriculture insurance among farmers and how agriculture insurance that can inspire the farmers to boost their agro-products for sustainability. Even though agriculture played a vital role in the overall Sri Lankan economy in past, presently agriculture contributes only 7% to the Gross Domestic Product. Agriculture is subject to various risk and uncertainties in both production and income levels. Therefore it is essential to promote an effective risk management mechanism for farmers. Agriculture insurance is one of a solution the best solution to minimize those risk and uncertainties by providing financial protection against loss and damages. A survey conducted with interviewing 42 farmers in selected areas in Kurunegala district shown that the demand for agricultural insurance scheme is considerably low and more than 36% of farmers were not aware of agricultural insurance while another 26% of farmers had doubts regarding the process of agricultural insurance. Further, they stressed that they do not have a clear understanding of the real benefits of such insurance for smal l farmers like them. Even though Sri Lanka was the first developing country in Asia that launched an all-risk insurance of paddy crop, the survey shows that agriculture insurance should promote by enhancing the awareness of the benefits to assure the farmers. Also, it leads to support not only the short-term agro products but also long-term agro products such as rubber since several studies have indicated that, natural rubber plants are good sink for atmospheric carbon dioxide. Further, it is suggested to promote agriculture by implementing innovative agricultural insurance products. This study opens up avenues to develop agriculture for sustainable development while promoting agriculture insurance in Sri Lanka