Lecture 2 Module II-Climate Variability and Change AE A 10 GIPE 2024

COURSE AE-A-10
TITLE: AGRICULTURAL RISK MANAGEMENT AND INSURANCE

MSc (Agribusiness Economics)
Batch 2022 – 2024
Final Semester (Jan ‘24– Apr ’24)
Course by
Dr Raosaheb Mohite
Visiting Faculty - Agri Value Chains
Gokhale Institute of Political Science and Economics (GIPE)

Deccan Gymkhana, Pune 411 001, MH State, India
Jan - Apr 2024 RM/RIA&I/AE-A-10/GIPE/M-II 1
Lecture
Module II
Climate Variability and Change

2. Climate variability and Change
Climate Risks…………………….……..
Challenges in Climate Variability
Drought Risk, Floods & Cyclones
Catastrophe Protection for Non-
Borrowing Farmers
Bankruptcy Law……………………….

Sources of emissions
Electricity generation
Coal fired power stations
Household fuel
Industry
Agriculture
Waste
Some Key facts about emissions
• As of Sep, 2021 India generated 39.8% of its electricity from renewable energy sources and 60.2%
of its electricity from fossil fuels of which 51% is generated from coal.
• As well as coal mining in India, the country also imports coal to burn in coal-fired power stations in
India. New plants are unlikely to be built, old and dirty plants may be shut down and more coal may
be burnt in the remaining plants.
Household fuel
• Switching from traditional fuels to liquefied petroleum gas and electricity provides health and
climate benefits.

Some Key features of emissions
Industry
• A quarter of emissions are industrial, mainly from producing cement, iron and steel. Industrial
sector fuel consumption increased by 406% between 2000 and 2014.
• As of 2014, 42% of energy was also consumed by industry.
Agriculture
• Agricultural emissions increased 25% between 2005 and 2014, in part due to significant increases
in the use of artificial fertilizers and the burning of crops.
Waste
• Waste emitted 78 Mt of CO2eq in 2014.

Some Key facts about emissions
• As of Sep, 2021 India generated 39.8% of its electricity from renewable energy sources and 60.2% of its electricity from fossil fuels of which 51% is generated from
coal.
• As well as coal mining in India, the country also imports coal to burn in coal-fired power stations in India. New plants are unlikely to be built, old and dirty plants may
be shut down and more coal may be burnt in the remaining plants.
Household fuel
• Switching from traditional fuels to liquefied petroleum gas and electricity provides health and climate benefits.
Industry
• A quarter of emissions are industrial, mainly from producing cement, iron and steel. Industrial sector fuel consumption increased by 406% between 2000 and 2014.
• As of 2014, 42% of energy was also consumed by industry.
Agriculture
• Agricultural emissions increased 25% between 2005 and 2014, in part due to significant increases in the use of artificial fertilizers and the burning of crops.
Waste
• Waste emitted 78 Mt of CO2eq in 2014.
Source: Wikipedia

2.1. Climate Risks
1. Climate is the least of all manageable resources.
2. Climate changes are real, and they are here to stay.
3. The Intergovernmental Panel on Climate Change (IPCC),
reaffirmed (in third assessment report or TAR) as below:
a. the climate is changing in ways that ‘cannot be accounted for’ by
natural variability alone
b. that ‘global warming’ is happening
Global mean temperatures, have risen 0.60C in the last century,
with last decade being the warmest
(Source: Climate Change and Indian Agriculture, Anish Chatterjee, 1998)
2.1. Climate Risks
3. The global climate change is going to affect the following
staple crops of India: Rice, Wheat and Maize.
a. Est. total production of Rice during 2021-22 is 127.93 million
tons, which is higher by 11.49 million tons than the last five
years’ average production of 116.44 million tonnes.
b. Est. production of Wheat during 2021-22 is 111.32 million tons,
which is higher by 7.44 million tons than the last 5 year’s avg.
wheat production of 103.88 million tons.
c. Est. production of Maize is record 32.42 million tons.
Source: 2nd Advance estimate of 2021 – 22 (Feb 2022)

2.2. Factors responsible for Climate Change
1. Factors causing Climate Change are:
a. Biotic processes,
b. Variations in solar radiation,
c. Plate-tectonics*
d. Volcanic eruptions.
Human activities have also been identified as causes
of ongoing climate change (global warming).
*Plate tectonics is a scientific theory that explains how major landforms are created as a result of Earth's subterranean
movements. The theory, which solidified in the 1960s, transformed the earth sciences by explaining many phenomena, including
mountain building events, volcanoes, & earthquakes

2.3. Evidence of Climate Change in India
1. Rising temperatures
a. Average annual temperature increased at a rate of 0.62°C per
100 years between 1901 and 2020 (source: World Bank)
2. Erratic rainfall pattern
a. Erratic rainfall patterns (both increase & decrease of precipitation
amounts) - average monsoon rainfall is changing:
i. a long dry spell in August and exceptionally high rainfall in September in
2020; excess rainfall in August in 2021.
ii. in a manner, the larger climatological changes are now finding
manifestation on ground

2.3. Evidence of Climate Change in India
3. Increase in the severity of droughts, floods & cyclones
a. From 1995 to 2020, India experienced 1,058 floods,
cyclones, droughts, cold waves and heatwaves
b. Floods accounted for 33% of these disasters, followed by
heatwaves (24%), droughts (22%), cold waves (16%) and
cyclones (5%).
(Source: NIDM and GIZ Report, January 2022).

2.4. Types of Climate Change
1. Concurrent Change (Impact)
- Such as ‘change taking place over the decades’
2. Unexpected Change
- Such as ‘change in weather pattern during monsoon season’
3. Major calamity
- Includes happenings such as
• Floods,
• Cyclone/ Tornado, - Source: Dr Kirit Shelat and Dr Bharat C Patel, 2015
• Cloud Burst etc

..2.4. Types of Climate Change
1. Concurrent Changes over the decades can

- Affect productivity & reduction in water resources
- Need an action plan at local level to address its impact with such
measures as
• Taking stock of what has happened to crops due to soil degradation and
consequent loss in productivity;
• Taking stock of what has happened to livestock due to changes in weather,
such as increase in temperature etc

...2.4. Types of Climate Change
2. Unexpected Change due to change in weather
pattern
- that which is manifested through
a. Delayed rain/ Long intervals for rain (drought) or
b. Heavy rain (flood)
- this needs a contingency plan that may include
a. the modification of cropping pattern
The contingency plan is prepared as part of local taluka level
action plan (LTLAP) at the Taluka level and the comprehensive
district agriculture plan (CDAP) at the District level. These plans
are prepared by Agricultural Universities, and they are made
available widely, by the State, specially to farmers from the
region.

....2.4. Types of Climate Change
3. Major calamity or disasters, such as Floods, Cyclone/
Tornado, Cloud bursts etc., can sometimes wipe out the
entire
i. soil strata and
ii. sweet water sources,
iii. livestock and shelter.
Hence this needs the development of a Detailed
Restoration Strategy

2.5. Poverty and Climate Change
• Climate change affects the poor the most, since
• the poor are heavily dependent on ‘climate-sensitive’ sectors such
as:
• Agriculture and
• Livestock and
• Forestry
• further, the poor often live on marginal land with fragile economic
structures
• lastly, the poor have fewer financial and technical resources.

2.6. Developing Countries and Climate
Change
1. Climate change will especially adversely affect socio-
economic sectors due to their vulnerability through:
a. Water resources
b. Agriculture, Livestock, Forestry and Fisheries
c. Human settlements
d. Ecological systems and
e. Human health

2.7. Key Global Environmental Issues
1. Land degradation
2. Impact on Pests (Insects, Diseases and Weeds)
3. Biodiversity loss
4. Greenhouse Gas Emissions
5. Stratospheric Ozone depletion

..2.7. Key Global Environmental Issues
1. Impact of climate change on soil (temperature rise)
a. Natural variability in climate and global warming can affect
rainfall patterns, which can contribute to desertification.
b. Rainfall has a cooling effect on the land surface, so a decline in
rainfall can allow soils to dry out in the heat and become more
prone to erosion.
c. ‘Drier soils’ suppresses both
i. Root growth and decomposition of organic matter and
ii. Increases vulnerability to erosion.
d. Both the organic matter and carbon to nitrogen ratio (C:N ratio)
will fall in a warmer soil temperature regime.
e. Increase in water evaporation from the soil and accelerated
transpiration from the plants will cause ‘soil moisture stress’.

...2.7. Key Global Environmental Issues
2. Pests (Insects, Diseases and Weeds)
a. Climate change is likely to cause a ‘spread of tropical and
subtropical weed species’ into ‘temperate areas’
i. the numbers of temperate weed species currently limited by the low
temperature at high latitudes.
b. The changing climate variables may either increase the
distribution range of weed species in response to a change in
atmospheric temperature or allow some non-potent weeds to
dominate weed abundance as crop-weed interactions may
increasingly favour C3 weeds (Bazzaz et al., 1985).
Reading Assignment: What are C3 and C4 plants?

....2.7. Key Global Environmental Issues
3. Loss of Biodiversity
a. Climate change is a main driver of biodiversity loss.
b. Biodiversity loss is one of the biggest environmental challenges.
c. It is probably more important than climate change.
d. Because, the problem of climate change can be corrected by
stopping the emission of more carbon dioxide into the
atmosphere, but the extinction or loss of species is forever or
cannot be reversed.
- Prof. Johannes Knops, Researcher at Xi’an Jiaotong-Liverpool University

Contributions of Plant
Biotechnology to
Food Security…(Source:
CropLife)

.....2.7. Key Global Environmental Issues
4. Greenhouse gas emissions
a. Greenhouse gases (GHGs) are gases in the earth's atmosphere
that trap heat (the Greenhouse Effect).
a. During the day, the sun warms the earth's surface, and at night the
earth's surface cools releasing heat back into the air.
b. Some of the released heat is trapped by the GHGs in the atmosphere
b. The human activities intensify the greenhouse effect and
contributes to climate change.
c. Carbon dioxide (CO2) from burning fossil fuels such as coal, oil,
and natural gas, is an important factor in climate change

.....2.7. Key Global Environmental Issues
1. Greenhouse gases (also known as GHGs) are gases in the
earth's atmosphere that absorb and emit radiant energy
within the thermal infrared range.
2. Carbon dioxide (molecules) is called a greenhouse
gas because it is one of the gases in the atmosphere that
absorb long-wavelength infrared energy (heat) from the
Earth and then re-radiate it, some of it back downward.
3. Thus, the greenhouse gases trap heat in the atmosphere
and warm the planet – a phenomenon called the
“greenhouse effect”.
Main Greenhouse Gases (GHGs)
1. The primary greenhouse gases in earth's atmosphere
are naturally occurring gases like water vapor (H2O),
carbon dioxide (CO2), methane (CH4), nitrous oxide
(N2O) and fluorinated gases (which are synthetic).
2. The destruction of ecosystems undermines nature's
ability to regulate greenhouse gas (GHG) emissions and
protect against extreme weather, thus accelerating
climate change and increasing vulnerability to it.

Top Greenhouse Gases
• The primary greenhouse gases in earth's atmosphere
are naturally occurring gases like water vapor (H2O),
carbon dioxide (CO2), methane (CH4), nitrous oxide
(N2O) and fluorinated gases (which are synthetic).
Gas % of emissions in U.S. 2020 (EPA)

Carbon Dioxide (CO₂) 78.8%
Methane (CH₄) 10.9%
Nitrous Oxide (N₂O) 7.1%
Fluorinated Gases 3.2%
Greenhouse Gas Emissions
1. Greenhouse gas emissions by India at 7% of global emissions
are the third largest in the world - mainly by burning of coal.
2. India emitted 2.8 Gt (gigatons) of CO2 in 2016 (2.5 including
LULUCF) - 79% were CO2, 14% CH4 and 5% N2O.
3. In 2019 China is estimated to have emitted 27% of world
GHG, followed by the US with 11%, then India with 6.6%.
PS: Land use, land-use change, and forestry (LULUCF), also referred to as
Forestry and other land use (FOLU), is defined as a "greenhouse gas
inventory sector that covers emissions and removals of greenhouse gases
resulting from direct human-induced land use such as settlements and
commercial uses, land-use change, and forestry activities”.
- the United Nations Climate Change Secretariat.
Top 10 countries with the highest GHG emissions
(in million tons) (2019)
1.China — 9,877 6. Germany — 644

2.United States — 4,745 7. South Korea — 586
3.India — 2,310 8. Iran — 583
4.Russia — 1,640 9. Canada — 571
5.Japan — 1,056 10. Saudi Arabia — 495
https://worldpopulationreview.com/country-rankings/greenhouse-gas-emissions-by-country

CO2 Emissions in India are much less than China
but rising much more quickly
Jan - Apr 2024 RM/RIA&I/AE-A-10/GIPE/M-II Friedlingstein Pierre et al 2019)

30
…..2.7. India’s GHG emissions increase
1. India generates much less carbon dioxide per person than other
primary regions, about 2 tons per person of GHG’s each year (which
is half the world average).
2. However, by 2030, it will be between 3 & 4 tons (the UNEP forecasts)
3. The Paris Agreement commitments includes a reduction of this
intensity by 33–35% by 2030 (GHG Emissions Factsheet India, 2020).
4. Cutting GHG gas emissions, and therefore air pollution in India, would
have health benefits worth 4 to 5 X the cost, which would be the
most cost-effective in the world (Sampedro Jon et al 2020)

Sources of GHG emissions in the US (EPA, 2020)
Energy Sector % of GHGs contributed
Transportation (Gasoline, Diesel, Etc) 27%
Electricity Generation (Coal, Natural Gas) 25%
Industry (Manufacture Of Metals, Cement, Chemicals) 24%
Agriculture (Livestock, Non-organic Farming &
11%
Processing)
Commercial (Heating, Cooking) 7%
Residential (Heating, Cooking) 6%

..….2.7. Key Global Environmental Issues
5. Stratospheric Ozone depletion
a. The ozone layer (shield) which absorbs most of the harmful
ultraviolet radiation coming from the Sun, is a region of Earth's
stratosphere and contains a high concentration of ozone, in relation
to other parts of the atmosphere.
b. Ozone layer depletion or thinning happens when the chlorine and
bromine atoms in the atmosphere come in contact with ozone.
c. They destroy the ozone molecules (one chlorine can destroy
100,000 molecules of ozone), more quickly than it is created.

Ozone Layer
1. Ozone is a naturally occurring gas found in the atmosphere
where it absorbs most of the sun's ultraviolet light - invisible
rays which are harmful to both plant and animal life.
2. Chlorofluorocarbons (CFCs) have been identified as the main
cause of the destruction to the ozone layer, but there are also
compounds containing bromine, other halogen compounds
and also nitrogen oxides which cause damage.
3. Chlorine from CFCs destroy the ozone allowing more ultraviolet
light (UV-B) to reach the earth's surface harming human and
plant life.

…...2.7. Effects of Stratospheric Ozone
Depletion
d. Harm caused by UV-B radiation to Humans:
i. Causes skin cancer, cataracts and increased infections through the skin – it’s
estimated that a 10% loss of ozone above Britain could cause an extra 8,000
cases of skin cancer every year.
e. Harm caused by UV-B radiation to Plants:
i.
Plants, in particular Phyto-plankton - the single cell plants, are highly
sensitive to UV-B radiation and this could upset the ocean food chain, and in
turn fish production.
Note: Plankton is a good air filter. It absorbs millions of tons of carbon each year
(about half of what the world produces) and also produces much of our oxygen
https://ypte.org.uk/factsheets/ozone-layer/the-effects

2.8. Challenges Of Climate Change
1. It is said that the impact of climate change is highest in
agriculture - compared to other sectors of the economy.
2. ‘Occurrence of Drought’ has high level of impact on the
yield of rainfed crops
a. Results in ‘yield reduction’ and ‘reduction in net income’.
3. Farmer encounters the climatic changes by
a. adopting the technological coping mechanisms
b. through shifting to other professions

2.8. Challenges Of Climate Change in India
1. The frequency and intensity of the heat waves are
increasing.
2. The severe landslides and floods are projected to become
increasingly common in such states as Assam.
3. India rose two spots to rank eighth out of 63 in the Climate
Change Performance Index (CCPI) 2023, thanks to its low
emissions and the increasing use of renewable energy
(Source: The Hindu).

Source: https://ccpi.org/
• The CCPI uses a framework of standardised criteria to assess and compare

the climate performances of 63 countries and the EU (as of CCPI 2024).
• The CCPI uses per capita GHG Emissions in its analysis.

Total primary energy supply per capita is a common, albeit imperfect, measure of energy efficiency in a country. For instance, neither the impact of climate on energy
use (heating, cooling) nor the size of the country and the density of the population are taken into account when comparing countries.

2.9. Issues in development of strategies for
meeting Climate Change Challenge
1. Issues to be kept in mind while developing successful
adaptive responses or strategies (in appropriate situations):
a. Land-use planning,
b. Watershed management,
c. Disaster vulnerability assessment,
d. Consideration of port and rail adequacy
e. Trade policy, and programs that countries use
i. to encourage or control production,
ii. limit food prices, and
iii. manage resource inputs to agriculture
..2.9. Strategies for meeting the Climate
Change Challenge
1. Improved training and general education of farming community.
2. R & D on development of new variety, by incorporating such
traits as
a. heat and drought tolerance, salt and pest resistant on priority.
3. Implementing food programmes and other social security
programmes as insurance against local supply changes
4. Improving infrastructure (transportation, distribution, markets
5. Making necessary changes in existing policies to facilitate
efficient response to climate change.
…2.9. Strategies to improve ability to
response
1. Making changes in crop subsidy schemes, land tenure systems,
water pricing and allocation, and addressing international trade
barriers - to increase the adaptive capability of agriculture.
2. Taking adaptive measures in a timely fashion to enable small -
marginal farmers cope with the effects of climate change at
a. Farmer level - backed by strong research and application outputs
b. Policy makers’ level
3. The above measures help in sustaining productivity and
ensuring country’s food and environmental security.

2.10. Key challenges of Climate Change
Crop Scenario Yield Projection Reference
Rice 20C rise - 0.06 - 0.075 ton/ha Sinha & Swaminathan
1.50C rise+2 mm rise in (1991)
rainfall+460 ppm CO2 +12% in South India
Saseendran et al (1999)
Wheat 20C rise + 425 ppm CO2 - 7-12% in North India Chatterjee (1998)
Maize 20C rise + 425 ppm CO2 -7-12% in North India Chatterjee (1998)
PS: For sugarcane, it is observed that for every 1°C rise in temperature, there would
be a marked reduction in its yield (Chattopadhyay, 2000)((Source: A. Chatterjee,2000).
From above, it’s clear that the staple food crops are going to be adversely affected.

..2.10. Key challenges of Climate Change
1. Key challenges of Climate Change: Droughts, Floods & Cyclones
2. Together they ‘adversely impact’ farm incomes and
threaten the very sustainability of agriculture as a livelihood
a. Climate change can create large scale devastation and
destruction, especially in the resource poor countries,
b. It can lead to loss of property and life.
c. It can force millions of farmers out of agriculture and discourage
investments.

2.11. Measures to address Climatic Change
risks
1. Appropriate measures needed to address the adverse
effects of climate change:
a. Protection against catastrophe
i. specially for Non-Borrowing farmers, who are not likely to have
insurance coverage
b. Intervention by the state and
c. Bringing about the necessary legal and policy reforms
i. changes in existing regulations including changes in the existing
bankruptcy law

..2.11. Addressing Climatic Change risks
2. Use of Climate Resilient Crops like
a. Heat and drought tolerant, pest resistant, salt tolerant
varieties
a. Genetic engineering & gene mapping offer the potential for
introducing a wider range of traits.
3. Following ‘No Tillage’ farming
a. Minimum/ reduced or conservation tillage technology in
combination with ‘cover crops’ and ‘green manure crops’ for
managing the soil organic matter, soil moisture, soil erosion and
nutrient loss. Anish Chatterjee, 2000
CO2 effect on crop yields: Addition of Nitrogen and other nutrients to take full advantage of the CO2 effect viz.,
higher concentrations of atmospheric carbon dioxide boosts crop yields by increasing the rate of
Photosynthesis & reduce the amount of water loss through transpiration
...2.11. Addressing Climatic Change risks
4. Better water resource management is required for
enhancing crop productivity
a. Because water resources in the semi-arid regions are likely to
decrease due to
i. increased evaporation (resulting from higher temperatures) combined
with
ii. changes in precipitation characteristics (amount, variability and
frequency),
5. Irrigated agriculture is less adversely affected than dry land
agriculture, but adding irrigation is a costly affair as it is
dependent upon the availability of water supplies.
Source: Climate Change and Indian Agriculture, Anish Chatterjee, 2000

....2.11. Addressing Climatic Change risks
6. Short-season crops:
- such as wheat, rice, barley, oats, and many vegetable crops,
‘extension of the growing season’ may allow more crops in a year.
7. Longer-season cultivars:
- to provide a steadier yield under more variable conditions.
- late maturing varieties and alteration of time of sowing:
- to take advantage of the longer growing seasons.
8. Changes in cropping pattern:
- shift from rice–wheat cropping system to other favourable crop
mix
x
Anish Chatterjee, 2000
…...2.11. Addressing Climatic Change risks
9. Adoption of heat & drought tolerant/ pest resistant/ salt
tolerant variety
10.Adoption of genetic engineering/ gene mapping that
offers potential for introducing a wider range of traits
11.Adoption of minimum/ reduced/ conservation tillage
technologies, in combination with planting of ‘cover
crops/ green manure crops’ which offer possibilities to
reverse existing erosion of soil organic matter/ soil
moisture/ soil erosion and nutrient loss (thus combating
further losses due to climate change).
...2.11. Addressing Climatic Change risks
12. Water Management
a. Agriculture is impacted by increased evaporation
i. resulting from higher temperature combined with
ii. changes in precipitation characteristics (amount, variability and frequency)
b. Water resources decrease due to climate change in the semi-arid
regions.
c. Overcome the water deficiency by adopting
i. better water management practices which in turn help enhance crop
productivity and ensure food security.
ii. Adopting irrigated agriculture as it is less adversely affected than dry land
agriculture

…..2.11. Farmer level adoption measures
1. More crops in a year for short-season crops (like wheat, rice,
barley, oats & vegetables so as to extend the growing season) &
crop rotation.
2. Achieve steadier yield by sowing longer-season cultivars.
a. Under more variable conditions, longer growing season is achieved by
going for late maturing varieties and alteration of time of sowing.
3. Changes in cropping pattern
a. Shift from vulnerable cropping system to other favourable crop mix.
4. Crop diversification
a. identified as a recommended adaptive response in Canada and in China.

2.12. Addressing Climatic Change risks
1. More research and development activities are needed on ‘other resources
and technologies’ to avert the ill effects of climate change, to sustain the
productivity and to ensure food and environmental security of the country.
Special focus in following areas is desirable:
1. Soil 4. Nutrients
2. Irrigation 5. Crops
3. Water 6. Crop Management Practices
2. Adaptive measures need to be put in place in a timely manner at the

• Farmer level
• Backed by strong agriculture / climate research & application outputs
• Policy maker level
• to enable the small and marginal farmers to cope with the climate change.

..2.12. Addressing Climatic Change risks
9. Policy measures
a. Non-Borrowing farmers, farmers with limited recourse to institutional credit,
account for more than 50% of farmers, and largely left out of most of the
governmental programs.
b. They are provided government relief only during ‘extreme climate events’ -such as
large-scale crop losses on account of weather conditions.
c. The broad steps in operating Catastrophe Protection are:
i. Determining the scientific and practical criteria to measure catastrophes.
ii. The government to obtain international reinsurance cover to finance payments during
catastrophe years.
iii. Determining the channel and ways of releasing the payments to beneficiary farmers affected by
catastrophes

Reading Assignment:
What ails climate-smart agriculture in South Asia?
Limited state resources & incentives, unequal tech dissemination
• Despite the promise of climate-smart agriculture (CSA), most

sustainable farming practices and technologies have not been widely
adopted across South Asia and are struggling to gain momentum
despite their proven effectiveness.
• Although some practices and technologies like crop diversification and
green manure have been used for a long time, others like zero tillage,
alternative wetting and drying had low adoption in South Asia.
• By 2050, South Asia will be one of the largest food-deficit regions and
thus requires a substantial increase in production to meet growing
food demand.
Full Article: What ails climate-smart agriculture in South Asia? Limited state resources & incentives, unequal tech
dissemination (downtoearth.org.in)
2.1.3. Bankruptcy Law and agriculture
lending
1. Applicability of Bankruptcy to agricultural loans
a. For agricultural lending, the law relating to insolvency will be applicable.
b. Unlike industry, agriculture has no easy recourse to bankruptcy laws.
c. Consequently, farmers with substantial exposure in agriculture facing serious
crop / income failure, are severely vulnerable, often quitting the profession,
or taking the extreme step, of committing suicide.
d. Govt is proposing to introduce suitable amendments, to provide succour to
the farmers, in extreme situations.
Bankruptcy is a legal proceeding involving a person or business that is unable to repay their
outstanding debts. Bankruptcy vs Insolvency: the insolvency proceedings are initiated and operated
at the instance of a debtor who is unable to pay his debts or who has been imprisoned for
indebtedness, whereas bankruptcy laws are put into action at the instance of the creditor.

..2.12. Bankruptcy Law and agriculture
lending
2. Hitherto, unlike the industry, the farmers with substantial exposure
in agriculture facing serious crop/ income failure, had no recourse to
bankruptcy process, as the insolvency law was applicable for them.
3. This meant the severely vulnerable farmers often quitting the
profession or taking the extreme step, of committing suicide.
4. As per report, the National Crime Records Bureau (2014) observed
that ‘bankruptcy or indebtedness’ was the leading cause for farmer
suicides in the country.

Farmers’ suicides
Bankruptcy and indebtedness accounted for 20.6 per cent farmer
suicides, and most of them were due to failure to repay crop loan. The
State of Maharashtra reported the highest number of farmer suicides
and a third of the suicides were due to bankruptcy or indebtedness.
With such glaring figures, the problem of farmer suicides is massive
and requires to be addressed immediately and effectively.
Sporadic government schemes providing for debt waiver are not a

feasible solution and are more often than not, politically motivated. A
credible solution to this grave problem could be the fresh start
process, through which a poor farmer can obtain a judicial order
writing off his debts up to an amount of ₹35,000.
..2.12. Bankruptcy Law and agriculture
lending
5. In this context, the Government proposed to introduce suitable
amendments, to provide succour to the farmers, in extreme
situations.
6. The subsequent enactment of the ‘Bankruptcy code’ or the
‘Insolvency and Bankruptcy Code or IBC’ (2016) has the potential to
help Indian farmers against bankruptcy.
7. A significant feature of the IBC is the ‘fresh start’ process - a debt
relief mechanism envisaged for impoverished persons like farmers
and micro-finance borrowers who may be unable to pay their debts
due to little or no money and assets.
https://www.thehindubusinessline.com/opinion/bankruptcy-code-will-help-even-
farmers/article64595715.ece
• The ‘fresh start’ process is not automatic.
• An individual has a good chance of obtaining debt relief within the
parameters of the proposed law who is
a) genuinely unable to pay his debts due to his financial
circumstances,
b) files correct financial information and
c) satisfies the eligibility criteria.
• If successful, this process will go a long way in reducing the incidence
of farmer suicides and thus, herald a new beginning for resolution of
personal insolvency.
‘Fresh Start’: ‘The procedure of a fresh start is codified in Chapter II of Part III of the code. Individuals and partnership
businesses can use the fresh start method to discharge their debts which are comparatively small and restart fresh with no
liabilities. This procedure is available as an alternative to insolvency and bankruptcy.’

The Bankruptcy Code
• The success of the personal insolvency regime under the IBC
depends on the effective functioning of the surrounding
infrastructure.
1. For instance, illiterate individuals will largely depend on
insolvency professionals to file their applications and handle their
affairs, which calls for the development of a market of
professionals who are honest and efficient.
2. The target of the fresh start process being farmers and
underprivileged persons, educating them of their rights is
indispensable to make the process work

1. Validity of Debt:
• Past-experience shows that a major impediment in insolvency resolution is
protracted litigation around the validity of debt.
• This is bypassed by storing debt-related information in ‘information utilities’
proposed under the IBC - as indisputable information.
2. Overburdened Judiciary:
• To circumvent the issue of ‘overburdened’ judiciary, multiple benches with
presence at district level is an essential requirement for the law to be accessible
to one and all.
3. With the code being made into law, swift and concrete steps to
upgrade the existing infrastructure as well those required under the
IBC, with special focus on personal insolvency are put in place.

‘Fresh Start
4. Though IBC has been in operation since 2016, the provisions relating
to the ‘fresh start’ process have only been notified in recent years.
5. One reason for the delay could be that the designated Assistance
Agency (AA) for the process, the Debt Recovery Tribunals (DRTs), are
overburdened with debt recovery cases under another legislation. To
make the provisions operate effectively, the State needed to set up
designated benches for the ‘fresh start’ process, or vesting jurisdiction
with other judicial or quasi- judicial authority with local presence
’
https://economictimes.indiatimes.com/news/economy/policy/how-bankruptcy-code-can-help-fix-indias-
agricrisis/articleshow/68260995.cms?utm_source=contentofinterest&utm_medium=text&utm_campaign =cppst

Conditions to be fulfilled by the debtor to make an appln. for Fresh Start
• The gross annual income of the debtor does not exceed 60,000 rupees;
• The aggregate value of the assets of the debtor does not exceed 20,000
rupees;
• The aggregate value of the qualifying debts does not exceed 35,000 rupees;
• He is not an undischarged bankrupt;
• He does not own a dwelling unit, irrespective of whether it is encumbered or
not;
• A fresh start process, insolvency resolution process, or bankruptcy process is
not subsisting against him; and
• No previous fresh start order under this Chapter II has been made in relation
to him in the preceding 12 months of the date of the application for fresh
start.

CLIMATE IMPACT HUMAN IMPACT OVERALL IMPACT
1. Sea Level Rise • Loss of land • Increase in poverty
• Flooding • Drowning, injury
• Sea surges • Lack of clean water, disease
• Erosion • Damage to coastal infrastructure,
• Salination of land and homes, and property
water • Loss of agri. lands & Livestock
• Threat to tourism, lost beaches
• Salinity ingress root – level of
crops and trees
2. Temperature Increase •Spread of disease • Productivity
• Change in disease •Changes in traditional fishing decline – overall
vectors •livelihood and commercial fishing production
• Coral bleaching •Threat to tourism, lost coral and - Agriculture
• Impact on fisheries fish diversity - Livestock
- Fishes
3. Extreme Weather • Dislocation of populations • Threat to food and
Events • Contamination of water supply health security of
•Higher intensity • Damage to infrastructure: delays hungry million
storms in medical treatment, food crisis
•Sea surges • Psychological distress
•Delayed monsoon • Increased transmission of disease
•Long interval between • Damage to agricultural lands
rain – spells • Disruption of educational services
•Early withdrawal of • Damage to tourism sector
monsoon • Massive property damage
4. Changes in • Outbreak of disease – both in • New health
Precipitation crops and trees & Human beings problems
• Change in disease • Depletion of agricultural soils
vectors
• Erosion
1. Sea Level Rise • Loss of land • Increase in poverty
• Flooding • Drowning, injury
• Sea surges • Lack of clean water, disease
• Erosion • Damage to coastal infrastructure, homes, and property
• Salination of land and water • Loss of agricultural lands & Livestock
• Threat to tourism, lost beaches
• Salinity ingress root – level of crops and trees
2. Temperature Increase • Spread of disease • Decline productivity – overall production
• Change in disease vectors • Changes in traditional fishing - Agriculture
• Coral bleaching • livelihood and commercial fishing - Livestock
• Impact on fisheries • Threat to tourism, lost coral and fish diversity - Fishes
3. Extreme Weather Events • Dislocation of populations • Threat to food and health security of
• Contamination of water supply hungry million
• Higher intensity storms • Damage to infrastructure: delays in medical treatment,
• Sea surges food crisis
• Delayed monsoon • Psychological distress
• Long interval between rain – • Increased transmission of disease
spells • Damage to agricultural lands
• Early withdrawal of monsoon • Disruption of educational services
• Damage to tourism sector
• Massive property damage
4. Changes in Precipitation • Outbreak of disease – both in crops and trees & Human • New health problems
• Change in disease vectors beings
• Erosion • Depletion of agricultural soils

SUMMARY
• Signals of climate change are ‘already visible’.
• Climate is ’the least manageable’ of all resources.
• Global climate change is going to affect major crops in India like
• rice,
• Wheat and
• maize
• To avert the ill effects, ‘more attention’ needs to be paid to other
resources and technologies viz.
• soil,
• irrigation water,
• nutrients,
• crops and
• management practices
End
rshbmohite@gmail.com

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COURSE AE-A-10

TITLE: AGRICULTURAL RISK MANAGEMENT AND INSURANCE

Gokhale Institute of Political Science and Economics (GIPE)

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Coal fired power stations

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Coal fired power stations

• As of 2014, 42% of energy was also consumed by industry.

• Waste emitted 78 Mt of CO2eq in 2014.

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(Source: NIDM and GIZ Report, January 2022).

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1. Concurrent Changes over the decades can

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- Prof. Johannes Knops, Researcher at Xi’an Jiaotong-Liverpool University

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Gas % of emissions in U.S. 2020 (EPA)

1.China — 9,877 6. Germany — 644

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Jan - Apr 2024 RM/RIA&I/AE-A-10/GIPE/M-II Friedlingstein Pierre et al 2019)

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• The CCPI uses a framework of standardised criteria to assess and compare

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2. Adaptive measures need to be put in place in a timely manner at the

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• Despite the promise of climate-smart agriculture (CSA), most

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