Agri-insurance as viable fallback against drought
Developing nations are considered more susceptible to the effects of extreme weather events as economic constraints make it difficult for them to deal with the damages caused by such events. They are also technologically less advanced and therefore lack access to adaptive technology. Being a natural resource-dependent production process, agriculture is the most vulnerable to such events as floods and droughts. Consequently, agricultural activities of developing nations are particularly vulnerable. In fact, 66 percent of Sri Lankan cropland is rain-fed, making them most vulnerable to drought. Paddy, tea, spices and vegetable cultivation are affected by drought and delayed monsoonal rains. Extreme weather events heighten poverty levels in the rural agriculture sector, which will further impede adaptation measures, making them increasingly vulnerable to extreme weather events, which in turn further reduces agricultural productivity, exacerbating poverty. This is a vicious cycle. Consequen...