Perception of Paddy Farmers towards Crop Insurance Scheme in Chitwan District of Nepal

Abstract

Aims: This study aimed to assess the perception of paddy farmers toward the crop insurance scheme and to examine changes in perception before and after participation in the scheme in Chitwan district of Nepal. Study design: A quasi-experimental single-group pre–post research design was employed using a convergent parallel mixed-method approach. Place and Duration of Study: The study was conducted in selected municipalities of Chitwan district, Nepal with pre- and post-assessments conducted in September and December 2022 respectively. Methodology: A field survey of 122 paddy farmers selected using simple random sampling, along with three key informant interviews and two focus group discussions conducted in Ratnanagar, Khairahani, Madi municipalities, and Bharatpur Metropolitan City. Farmers’ perceptions and knowledge were assessed before and after participation in the insurance scheme using a five-point Likert scale. Quantitative data were analyzed using paired t-tests and multiple linear regression, while Garrett’s ranking technique was applied to prioritize major risks in paddy production. Qualitative data were used for triangulation. Results: The results revealed statistically significant improvements in farmers’ awareness, understanding of insurance procedures, adoption behavior, and overall knowledge after participation in paddy insurance, with mean differences of −0.488, −0.407, −0.345, and −1.057, respectively (P<.001), where negative values indicate improvement after the intervention. Socio-economic factors such as farming experience, household size, income, and training significantly influenced perception change, explaining 18.4% of the variation (R² = 0.184). Garrett’s ranking identified crop diseases, insect pests, wind and hailstorms, and input-related constraints as the most severe risks affecting paddy production. Major   constraints identified were delayed claim settlement, limited technical knowledge, and procedural complexity. Conclusion: The study concludes that participation in the crop insurance scheme significantly enhances farmers’ perception and awareness. Strengthening extension services, simplifying procedures, and ensuring timely claim settlement could improve adoption and effectiveness of crop insurance as a risk management tool for paddy farmers in Nepal. The findings highlight the policy importance of strengthening extension services, simplifying insurance procedures, and ensuring timely claim settlement to enhance farmers’ confidence and effective implementation of crop insurance schemes.