This chapter dives deep into the intricate landscape of risk
management in agribusiness, recognizing the ever-evolving challenges faced by
the agricultural sector. The multifaceted nature of risks, including
production, market, regulatory, financial, and human resource risks,
underscores the complexity of decision-making for farmers. Drawing on diverse
socio-economic backgrounds, farmers' risk perceptions significantly influence
the adoption of risk management strategies, with factors like age, education, culture,
and institutional support playing pivotal roles. The chapter identifies and
explores the types of risks prevalent in Indian agribusiness, elucidating the
dynamics of production risks influenced by weather, pests, and technological
advancements, market risks arising from price fluctuations, regulatory risks
tied to governmental actions, financial risks associated with credit and
exchange rates, and human resource risks linked to personnel unavailability. A
comprehensive analysis of risk management strategies is presented, encompassing
crop insurance, crop diversification, water management, technology adoption,
market linkages, credit and financial management, capacity building, and policy
support. While farmers employ these strategies to navigate uncertainties, the
chapter acknowledges that implementing risk management practices incurs costs
and may impact productivity. Ongoing research and dialogue are deemed essential
to refine and optimize risk management approaches, ensuring the resilience and
sustainability of agribusinesses in the face of evolving challenges.
Author(s) Details:
Ashish Ashok Uikey,
Symbiosis International (Deemed University), Pune, Maharashtra,
India.
Please see the link here: https://stm.bookpi.org/RACAS-V5/article/view/13770
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