Effective agricultural risk management is essential to safeguard the livelihoods of farmers against climate variability and market uncertainties. Given the ongoing pressures from climate change and economic challenges, protecting farmers from yield losses is increasingly important. The study examines the growth of Pradhan Mantri Fasal Bima Yojana (PMFBY) in Odisha, identifying key adoption drivers and barriers that farmers face in participating. Primary data were gathered from 140 adopters and 60 non-adopters

in two purposively selected districts in Odisha, which was analyzed using Compound Annual Growth Rate (CAGR), Cuddy Della Valle Index (CDVI), Logit regression, and Garrett’s ranking technique. Farmer enrollment under PMFBY has shown steady growth during the Kharif season (15.53%) but was relatively low in the Rabi season (0.12%). The number of beneficiaries rose significantly in both Kharif (53.27%) and Rabi (57.56%) seasons, though with high variability. However, claim payouts demonstrated a negative

growth rate and high instability across both seasons. Factors such as education and awareness about crop insurance were significant in influencing adoption, with access to credit and social networks further encouraging uptake. Common issues faced by both adopters and non-adopters included the absence of local grievance mechanisms, delays in Crop Cutting Experiments (CCE), late insurance settlements, lack of transparency, and incomplete documentation in the cultivator’s name. Enhancing farmer awareness through extension services, social media, and other communication platforms, alongside tailoring insurance units to individual farms, could improve risk coverage and strengthen the scheme’s impact.

Highlights

• The PMFBY scheme in Odisha has achieved stable growth in farmer coverage during the Kharif season with moderate variability, while the Rabi season witnessed minimal growth.
• Despite the increasing total sum insured, the insured area and claims paid under the scheme exhibited negative growth rates, reflecting declining coverage and payouts over time.
• In Kendrapara; age, education level, household size, easy access to credit, awareness of insurance products, availability of non-farm income, and social contacts demonstrated a statistically significant relationship with the adoption of crop insurance. While in Bargarh; education, farm income, and awareness of insurance policies significantly affected adoption.
• Major challenges identified include delays in claim settlements, lack of grievance redressal mechanisms, and issues with document verification, which significantly impact effectiveness of the scheme for insured and non-insured farmers alike.