India Lost 33.9 Million Hectares of Crops Due to Excess Rains, WEF Report Reveals
By 2024-08-16 11:38:40
According to a WEF report, India lost 33.9 million hectares of crops as a result of excessive rains
Extreme climate events have significantly impacted India’s agriculture sector, according to a new report by the World Economic Forum (WEF). The report highlights that between 2015 and 2021, India experienced crop losses amounting to 33.9 million hectares due to excessive rainfall and an additional 35 million hectares due to drought conditions.
Agriculture, which constitutes 15% of India's GDP and employs approximately 40% of the population, faces severe risks from these extreme climate events. The WEF report, titled “Income Protection and Early Warning Systems: How India is Building Climate Resilience,” outlines the pressing challenges posed by climate change, including heat waves, floods, and earthquakes.
Economic Impact and Insurance Gap
The report reveals that in 2021 alone, Indian sectors, including agriculture, suffered economic losses totaling $159 billion due to lost working hours from extreme climate impacts. It projects that by 2030, India could see a 5.8% decline in working hours, equating to 34 million full-time jobs, due to heat stress.
Despite these challenges, there is a significant insurance coverage gap that hinders many from protecting their livelihoods against extreme weather events and climate change, the WEF notes.
Government Initiatives and Innovations
Sandeep Katiyar, Co-Founder & CFO of Finhaat, emphasizes the urgent need to enhance resilience among farmers. He notes that small and marginal farmers, who hold less than one hectare of land, make up 86% of those engaged in agriculture.
The Indian government is making strides in this area with policy interventions such as the Pradhan Mantri Fasal Bima Yojana (PMFBY) and the Restructured Weather-based Crop Insurance Scheme (RWBCIS), which provide insurance for both crops and weather-related risks.
Focus on Vulnerable Populations
The WEF report points out that extreme weather disproportionately affects low-income Indians, exacerbating the insurance coverage gap. However, innovative weather-based insurance products tailored to specific geographies and sectors are being developed to address these challenges.
The report highlights the potential of the Sandbox for Agricultural and Rural Security, Technology, and Insurance (SARATHI) initiative to enhance farmer resilience against climate volatility. Additionally, the introduction of the Women’s Climate Shock Insurance and Livelihoods initiative (WCS) aims to provide income replacement for female outdoor workers during extreme heat waves.
Global Replication and Future Challenges
The WEF suggests that successful initiatives in India could serve as models for vulnerable communities globally. It also warns that if climate-induced migration reaches 45 million people by 2050, it could lead to significant economic repercussions, including reduced tax revenues.
Katiyar underscores the importance of comprehensive risk management, including warehousing and targeted insurance products, to mitigate risks and strengthen the agricultural sector’s resilience.
