GIZ Byte-Sized: BASIS RISK & WBCIS
Crop insurance is an invaluable financial instrument for mitigating risks inherent to agriculture, providing producers the means to transfer and share risks – whereby the losses suffered by few are met from funds accumulated through contributions made by many exposed to similar risks. is document aims to present a succinct overview of the Indian Weather index-based Crop Insurance Scheme (WBCIS), its potential and challenges, examining in particular the inherent phenomenon of “basis risk” prevailing within these schemes.
Th e report features a field analysis of basis risk by GIZ & AICI in Rajasthan on the basis of which essential policy recommendations are provided.
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