Are rainfed agricultural households insured? Evidence from five villages in Vidarbha, India

There are several studies on risk and insurance in village economies in the developing world. However, there is a lack of evidence for recent decades in spite of profound changes including structural transformation and widespread market liberalization in most regions. In this paper, I use primary panel data from five rainfed villages in a high-risk region of India and find evidence of considerable exposure as well as vulnerability to idiosyncratic and covariate risks. Further, there is significant wealth differentiated heterogeneity in vulnerability. The findings help identify the scope of public policy in improving risk management in rainfed agriculture