In above from the pre-Industrial levels and

In rural area of Bangladesh,
agriculture is the main source of employment where employment rate is almost 8o
percent of the rural population as well as agriculture contributes one quarter
of the total GDP (Akter et al., 2009). On the other hand the agriculture sector
of Bangladesh is responsible for feeding almost 151.5 million people of the
country which is 2.54 percent of the world’s population (MoA, 2012).  

The annual crop-production in
Bangladesh is mainly divided into two seasons, which is known as kharif and
robi. Kharif season is characterised by high temperatures, rainfall and
humidity (Mainuddin et al., 2011). This season covers the months from mid-March
to mid-October and the rainfall and soil storage supply moisture which is very
much effective to support the rain fed crops. Like Aus rice, Aman rice are the
main crops in this season. The robi season covers from mid-October to mid-March
and this season starts with sunny and dry weather (Mainuddin et al., 2011). It
is also called the cold season. The crop production of this season largely
depends on groundwater and irrigation. Like Boro rice is the main crop in robi

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2.2 Weather Risk and
Agriculture Sector in Bangladesh 

Crop production is in the grip
of weather (Walker and Sarkar, 1996). As a result weather is the only one
element which can change everything in agricultural production. In recent
times, Climate-related disaster such as floods, cyclones, storm surges and
droughts occurs more frequently and severe in Bangladesh. A historical data
shows that about 174 natural disasters occur in Bangladesh from 1974 to 2007
which specially damage on crop production (Uddin et al., 2014). So weather is a
key factor in agriculture production and every year 1 percent land is shrinking
by erosion, subsidence and sea level rise (Hellmuth et al, 2013). As Bangladesh
is a low-lying and densely populated country it is more vulnerable than others.
Mainly climate related disasters have the most extreme impact and cause maximum
amount of damages directly on agriculture, agriculture dependent livelihood,
resources, infrastructure and indirectly on economic growth of the country
(Ghazanfar et al., 2015).

On the other hand, it is
predicted that the global temperatures are now at least 1 °C above from the
pre-Industrial levels and so the future temperatures are possible to face
significant rises (Adiku, 2017). So it is clear that if a country try to be an
industrial country it creates global warming which is very much dangerous for
agriculture sector.

 Besides, Bangladesh is heavily flood and storm
prone area which occurs more frequently. It is also predicted that by the year
of 2030, 14.3 % additional area of Bangladesh would become severe vulnerable to
floods and the existing flood-prone areas will face higher levels of flooding
in future (Dowla, 2009). On the other hand, 58 strong storms attack in between
1960 and 2010 and which has teared down farms and wiping out crops. Like
Cyclone Sidr, which smashed into Bangladesh in 2007 and damage assets,
infrastructures and agricultural production specially US $438 million loss in
agricultural sector in South-west region which is nearly 95% of the total loss
of all sector (Uddin et al., 2014). So agriculture is naturally sensitive to
climate circumstances, and it is among the most vulnerable sectors to the risks
of global climate transform (Parry and Carter 1989; Reilly 1995). 


2.3 Adaptation of Weather

Adaptation is a central factor
of any policy response to climate change shock and vulnerability assessment
(Fankhauser, 1996; Smit et al., 1999; Mizina et al., 1999; Reilly and
Schimmelpfennig, 1999). With the adaptation, vulnerability can be reduced
(Nordhaus, 1991; Easterling et al., 1993; Rosenzwieg and Parry, 1994;
Fankhauser, 1996; Mendelsohn, 1998; Wheaton and McIver, 1999). 

On the other hand climate change
creates not only long term transformation of mean situation, but also
transforms in the year-to-year (Hulme et al., 1999; Wandel and Smit, 2000).
That’s way poor farmer fall in danger when they cultivate crop. So the farm
production and farmer’s income reduces (Adger and Vincent, 2005). As a result
it is very much essential to protect the farmers from their losses in their
production due to climatic change (World Bank, 2011). Therefore, to recover
from this situation there is essential to provide financial support so that
agricultural sector run smoothly even in uncertain condition. 

In this regards, there are two
types of measures one is structural and other is non-structural to reduce the
loss in agriculture sector in Bangladesh. But structural measures are less
effective to disaster risk management than non-structural measures. Crop
insurance is one of the non-structural measures which use as a tool for
reducing loss in agriculture sector (Ahsan, 2011). Crop insurance is more
essential to uncertain climate condition and variability of climate leads to
more regular and excessive catastrophic weather events. Private insurance
companies try to address the crop and property damage due to hazards as
droughts, floods and other climate-related actions (Smit and Lenhart, 1996). So
there is no doubt that crop insurance is one of the best financial tools which
works in uncertain condition. 


2.4 Crop Insurance in
Different Countries

World agriculture is facing the
severe problems due to climate change as well as it cannot provide enough high
quality food for the world population. According to the Food and Agriculture
Organization (FAO), globally, agricultural output is a need to increase by 1.6
percent annually until 2015 and 1.4 percent until 2030 (BMELV, 2008). As a
result, it is clear that there is a strong dependence of agriculture on the
natural environment and which makes it risk prone sections (Kurukulasuriya et
al., 2006). In Asia, Sub-Saharan Africa, Latin America and the Caribbean part
of the world have started crop insurance as an adaptation tool for weather
induced risk in agriculture sector there are some countries and many
international organization such as Netherlands, European Union, and Japan
provide aid to them (Zant, 2008). 

In many developing countries,
the government and NGOs have started crop insurance as a primary program for
the benefit of the farmers and save agricultural output to insure the national
food security of these nations (Clarke et al., 2012). In India, farmers deal
with some insurance company as an experimental evidence against agricultural
risk and they get much more motivation to increase investments in higherrisk
for higher-return in agricultural production and where crop insurance has been
available since 2004, 12.7 million farmers bought the insurance between 2007
and 2011 (Cole et al., 2011). On the other hand, many African countries
rigorously introduce agricultural insurance for the poor farmers over the last
few decades and almost 1,000,000 farmers in Africa are engaged through
governments, Non-Governmental Organizations (NGOs) and commercial unsubsidized
programs (Greatrex et al, 2015). 






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