A

SYNOPSIS REPORT
ON
AGRICULTURAL INSURANCE
AT
SBI BANK
Submitted
By
G. NAVEEN
H.T.NO: 1304-20-672-028
PROJECT SUBMITTED IN PARTIAL FULFILLMENT FOR THE AWARD OF DEGREE
OF

MASTER OF BUSINESS ADMINISTRATION

Department of Business Administration

AURORA POST GRADUATE COLLEGE

PEERZADIGUDA

(Affiliated to Osmania University)

2020-2022
 AURORA POST GRADUATE COLLEGE
PEERZADIGUDA

Department of Management

SYNOPSIS

Title of the Project : AGRICULTURAL INSURANCE

Student Name : G. NAVEEN

Hall Ticket Number : 1304-20-672-028

Signature of the Student :

Signature of the Guide :

 TABLE OF CONTENTS
S. No. CHAPTER Page No

1 INTRODUCTION

2 NEED FOR THE STUDY

3 OBJECTIVES OF THE STUDY

4 RESEARCH METHODOLOGY

5 LIMITATIONS OF THE STUDY

INTRODUCTION
Agricultural insurance in India is an examination of credit to farm borrowers for the financing
and liquidity services. It is also regarded as studying those financial intermediaries who
provide the financial markets and agriculture with loan funding where those intermediaries
receive their loan capable funds. "Agricultural financing is just as important as other inputs
for agricultural production. Only if the farmers have money (funds) can technical inputs be
bought and used. Yet his own money is always insufficient and he needs money or credit
outside of it. Capitalizing farmers into new investment and/or adoption of new technologies is
farm finance. The significance of agricultural credit is further strengthened by the unique role
of Indian agriculture and its important role in alleviating poverty in the macroeconomic
framework. Since the start of the planned development era in India, the emphasis on the
institutional framework for agricultural credit is stressed in recognition of the importance of
agricultural credit in promoting agricultural growth and development. It aims to address and
assess the development of India's history and need for agricultural funding, sources and
magnitude of Agricultural insurance in india.

Until 1935, the money lenders had been farming the only source of credit. They used to
charge excessively high interest rates and follow severe practices while lending and
recovering. As a result, farmers had to pay heavy debts and many of them continued debt. By
the Reserve Bank of India Act of 1934 the Central Co-op of District. Agricultural lending and
improved agricultural lending have received momentum as well as the Bank's Act and Land
Development Banks Act. There was created a powerful alternative agency. A large credit was
easily available in terms of both granting and recovery loans at reasonable interest rates.

While the co-operative banks began financing agriculture in 1930 with their establishments,
the real impetus came only after the Independence, when appropriate legislation and policies
had been enacted. Then, by opening branches in rural areas and drawing deposits, bank
lending to agriculture has made phenomenal progress.

HISTORY OF FINANCING AGRICULTURE IN INDIA

Until 1935, the money lenders had been farming the only source of credit. They used to
charge excessively high interest rates and follow severe practices while lending and
recovering. As a result, farmers had to pay heavy debts and many of them continued debt.
The Reserve Bank of India Act 1934 was adopted.
Central Co-op District. Agricultural lending and improved agricultural lending have received
momentum as well as the Bank's Act and Land Development Banks Act. There was created a
powerful alternative agency. A large credit was easily available in terms of both granting and
recovery loans at reasonable interest rates. Though the co‐operative banks began financing
their farmers in the 1930s, their real impetus was only received after independence, when
appropriate legislation had been adopted and policies had been drawn up. Then, by opening
branches in rural areas and drawing deposits, bank lending to agriculture has made
phenomenal progress. Until 14 major trade banks were nationalized in 1969, the major
financial agencies for agriculture were cooperative banks. Following nationalization, the
banks were required to provide financing as a priority to agriculture. These banks have
conducted special branch expansion programs and have created a nationwide banking service
network and have begun large-funding of agriculture. Thus, the credit for agriculture has
become multi-. New technologies and financing available are being developed and adopted
together The farmers ' short-and long term needs are met by a wide number of formal
agencies, such as Cooperatives, Regional Rural Banks (RRBs), Scheduled Commercial
Banks and Non Banking Financiers (NBFIs) as well as Self-Help Groups (SHGs). Several
initiatives were taken to strengthen the rural credit system institutional mechanism. The
White Revolution and the Yellow Revolution have played a crucial role in bringing "Green
Revolution" finance. The share of commercial banks in total agricultural loans increased
dramatically during the first half of the 2000s In the 1990s there was a growing share of
short-farm credit in total farm loans. To ensure easy access to credit, new credit delivery
systems have been introduced in the form of Kisan Credit Card (KCC). The procedures and
loan amounts have been standardized for various purposes. "Crop loans" (Short-term credit)
have the biggest share of the diverse purposes. Farmer farmers also have loans to buy electric
motors with pumps, tractors and other equipment, digging wells, pike lines, irrigation, fruits
orchards planted, dairy animals and their feed, poultry and cattle farming, and for many more
allies. Furthermore, farmers are awarded loans for pumps and tractors. The flow of ground
level credit increased dramatically in the 12-year period from 2000-to 2011-, in particular
after the' doubling' period (2004-), showing nearly ten times more In the next five years of
FYP XIII, another Rs35 to 42,000 lakh crore has been paid (12th Five Year Plan Estimates)
in the amount of roughly Rs 28 lakh crore. Agricultural credit has obviously come to be an
important strategy for accelerating farm investment.
The PM-KISAN Scheme was introduced to provide financial support to farmers. Under this
scheme, the government offers Rs 6,000 every year in three instalments of Rs 2,000 each to
over 14.5 crore farmers across India.
Paramparagat Krishi Vikas Yojana has been launched to motivate groups of farmers to
take up organic farming. A special scheme has also been launched in North-Eastern Region
for promotion of organic farming and export of organic produce.
Pradhan Mantri YUVA Yojana - Launched in August this year, the scheme is aimed at
upskilling the youth of the country by providing skill development training. It also aims at
providing entrepreneurship education in order to enable better business opportunities for the
youth.
The Pradhan Mantri Kisan Samman Nidhi Yojana (PM-Kisan Yojana) is a government
scheme through which, all small and marginal farmers will get up to Rs 6,000 per year as
minimum income support. This 75,000-crore scheme aims to cover 125 million farmers,
irrespective of the size of their landholding in India.
NEED OF THE STUDY

Agriculture insurance assumes vital and significant importance in the agro – socio –
economic development of the country both at macro and micro level. It is playing a catalytic
role in strengthening the farm business and augmenting the productivity of scarce resources.
When newly developed potential seeds are combined with purchased inputs like fertilizers &
plant protection chemicals in appropriate / requisite proportions will result in higher
productivity. Use of new technological inputs purchased through farm insurance helps to
increase the agricultural productivity. Accretion to in farm assets and farm supporting
infrastructure provided by large scale financial investment activities results in increased farm
income levels leading to increased standard of living of rural masses.
.
 SCOPE OF THE STUDY

In India, traditionally risk would be managed either privately or through implicit contracts
within the family or network (caste groups/extended families/joint families). Such contracts
can be quite useful to handle non covariant risks. However, yield risks are often locally
covariant, implying that these traditional contracts within village and families would not
perform well to insurance against yield risks. Another form of risk coping strategy among
farmers is income diversification/crop diversification that will reduce variance of their
income. If benefits of reduced risk exposure from such crop diversification are large, then
farmers may be willing to forego some of the possible gains from trade/specialization; that is
they would diversify crop rather than specialize in the activities in which they have a
comparative advantage. This strategy is may seems optimal from individual point of view, but
it may undermine the competitive advantage of a nation through specialization that hinders
national development. Productivity labour would likely increase under specialization. Also,
agricultural research could focus on fewer products and thereby increase its effectiveness in
developing new technologies. A Project Of 45 Days
OBJECTIVES OF THE STUDY

1. To develop rural economy.

2. To provide credit for agriculture and allied activities.
3. To encourage small scale industries, artisans in the villages.
4. To reduce the dependence of weaker sections (Marginal farmers, small farmers and
rural artisans) on private money lenders.
5. To fill the gap created by the moratorium on borrowings from private money lenders.
6. To make backward and tribal areas economically better by opening new bank
branches.
7. To help the financially poor people in their consumption needs.
8. Stability in Income: It protects the farmers against losses caused by crop failure.
9. It acts like a tool that allows farmers to manage their yield and price risks.
10. Minimal Debts: Farmers are able to repay their loans even during the time of crop
failure with the support of the right insurance partner
RESEARCH METHODOLOGY
TYPES OF RESEARCH
RESEARCH:
Research is an art of scientific investigation. Research is defined as a “scientific and
systematic search for information on a specific topic”.
The purpose of search is to discover answers to questions through the application of scientific
procedures.
METHODOLOGY:
The data used for analysis & interpretation is received from the responses of employees for
the questionnaire. Comparison of response is used for interpreting the data.
The project is presented by using tables, column charts, with their interpretation. A survey is
undertaken to know the facts about the training.
AREA OF RESEARCH : Hyderabad
DATA COLLECTION:
The researcher has wide varieties of methods to consider either single or in combination they
were grouped first according to whether this use secondary or primary sources of data.

PRIMARY DATA:

Data originally collected for an investigation known as primary data concluding personal
interviews through questionnaire. Most of the study for this project is based on primary data
itself.

SECONDARY DATA:

Data which is not originally collected rather obtained from published or unpublished sources,
is know as secondary data. It can be defined as data collected by someone else for purposes
other than solving the problems.

Secondary data for the present study is retrieved from company profile and text books.
RESEARCH INSTRUMENT:
The structural questionnaire with multiple choices.
 The data collected from the survey has been tabulated and analyzed. The data is
represented graphically by using column charts for easy understand ability.
METHOD OF SAMPLING
The methodology used for this purpose is Survey and Questionnaire Method. It is a time
consuming and expensive method and requires more administrative planning and supervision.
It is also subjective to interviewer bias or distortion.

Sample Size: 100 respondents

Sampling Unit: Businessmen, Government Servant, Retired Individuals

PERIOD OF STUDY
 A Project Of 45 Days
Survey Tools using in the study
Statistical Tools: MS-excel and pie and bar diagrams are used to analyze the data.
LIMITATIONS OF THE STUDY
A one man research is always confronted with various bottlenecks and the present
study is not an exception to these limitations. The present study is more of a descriptive
in nature. The study was carried out in two different nations in a limited time frame. The
socio – economic and cultural aspects are completely diverse in both the countries.

One of the most important limitations of the case study (Warangal district, Andhra
Pradesh) undertaken was that the study was confined to a particular agro-climatic and
agro-economic region and hence the conclusions drawn are applicable to that area and
areas with similar conditions only. Therefore, the extent of generalization has to be
cautiously made. Secondly, the data were collected through the survey method by
interviewing farmers. Therefore, the objective of the data is limited to the extent that the
farmers are able to sum up from their memory, as they do not maintain any records.
However, all care has been taken to get reliable data from informants. Due to fluctuation
in the prices of the selected crops, the average price during the study period has been
taken for the computation of the production, cultivation and input costs. Hence it could
be considered as one of the limitations of the study. The study is also confronted with the
constraints of limitation of time, sample size and resources at the disposal of the
investigator.