A STUDY ON THE BEHAVIOURAL ASPECT OF SMALL FARMERS TOWARDS SUBSCRIPTION OF CROP INSURANCE SCHEME IN CHITRADURGA DISTRICT

Abstract

Purpose – This study examines solely the behavioural aspect of the small farmers’ subscription to crop insurance schemes in Chitradurga district, Karnataka, focusing on the financial literacy and social factors determining subscription. Through this, we aim to determine the relationship between social factors such as friends, family, and neighbours, and their influence on the choices of small farmers to get crop insurance.

Design/methodology/approach – A Likert scale, a Five-point basis was adopted to standardise behavioural aspects. The 400 small farmers’ data was collected through a structured questionnaire in December 2024 and January 2025 with a stratified random sampling technique for analysis. The study analysis has been conducted with descriptive statistics by establishing results from one-way ANOVA. Confirmatory Factor Analysis was performed using SPSS-22 and AMOS 26, the SEM Model was established to examine the hypothesis relationship.

Findings – The outcomes exhibit the correlation analysis's findings, which point toward a positive association between enrolment in crop insurance and financial literacy, underlining the status of financial literacy among small farmers. Social factors like friends, family, and neighbours will influence, indicating that each group influences small farmers uniquely, while enrolment in crop insurance is about small farmers of the Chitradurga district. Furthermore, the statistical model suggests that the data with the model are acceptable.

Originality/value – This study's significance is in clarifying the ways by which insurance literacy impacts insurance participation in Chitradurga. A sizable amount of cognitive insurance literacy is captured by perceived confidence in insurance providers, which is necessary for insurance literacy to affect insurance inclusion.