Determinants of Farmers’ Vulnerability to Poverty Due to Crop Loss: The Case of Assam, India

Abstract

This article tries to assess the determinants of farmers’ vulnerability to poverty due to crop loss and to find out how they cope with it. To carry out the aforesaid study, we have conducted a field survey in Assam, India. Using ordered probit regression, we find that vulnerability is determined by a host of factors such as age, family size, social group, monthly expenditure, loss due to crop damage, coping measures, crop insurance, use of chemical fertilizers and irrigation. However, access to institutional support does not reduce vulnerability significantly. Coping measures are mostly destructive, and farmers with these coping strategies are more vulnerable to poverty. Social safety nets such as public distribution and ad hoc employment facilities are available, but the safety nets needed for farming and basic measures required for increasing productivity have been lacking. The study recommends affordable irrigation, training and awareness programmes and the provision of the resource base for successful coping. It is also important to provide opportunities for livelihood diversification to maintain the inflow of cash during crop loss. Finally, farmers who are on the margins of subsistence require institutions for social security to reduce vulnerability and bring about transformation. JEL Classification: C83