Analysis Of Agricultural Insurance Pertaining To PMFBY Scheme: Exploring Dynamics And Future Implications

Abstract

This study examines the complex workings of the Pradhan Mantri Fasal Bima Yojana (PMFBY) and its impact on paddy crop-insured farmers during the fiscal years 2021–2022 and 2022–2023. It was carried out across 12 districts in Karnataka. Based on primary data gathered from 500 farmers, the study uses structural equation modelling (SEM) to identify important relationships between Economic Value, Consumption, Anticipated Satisfaction, Perceived Performance, and Purchase Intention. The first SEM model indicates that there is no significant impact on performance, which motivates more research. The incorporation of a temporal dimension using dynamic SEM-2 and delta analysis reveals non-significant variations in satisfaction, indicating potential avenues for enhancement in subsequent iterations of PMFBY. By utilising prospect theory, the research explores the psychological aspects that impact farmers and offers policymakers theoretical insights for improving programs. To protect farmers' long-term well-being, the research provides a road map for resolving problems, boosting PMFBY's effectiveness, and offering insightful counsel for the next policy advancements in agricultural risk management.