Institute for Social and Economic Change
Working Paper: 464
Farmers’ Perception on Risk and Management Strategies in
Mahanadi River Basin in Odisha: An Economic Analysis
Jayanti Mala Nayak
A V Manjunatha
Using primary data from Mahanadi River Basin of Odisha, the present study examines the risk perceptions, management strategies and their relationship with farm and farmer characteristics. A total of 311 farmers were interviewed from three districts, namely, Sonepur, Boudh and Kendrapada, which are in upper (102), middle (106) and lower (103) region of Mahanadi River. Drought (3.9) was perceived as the most important source of risk in Upper Mahanadi region, inadequate government support, including crop insurance, (3.7) in middle Mahanadi region and flood (4.1) in lower Mahanadi region. The important risk management strategies followed by Upper Mahanadi region farmers was varietal diversification (3.7) of the same crop specifically paddy while it is crop diversification in middle (mixed cropping) (3.4) and lower Mahanadi region (3.6). The result of Multiple regression analysis shows that risk perception of the farmers of these three regions were influenced by social groups, off-farm income, ratio of earning member to the household size, farm size, land ownership status and government support. The regression results of management strategies are almost similar with the results of risk perception, social group, ratio earning member to the household size, land ownership status, age, off-farm income and farm size have a significant influence on the management strategies across the three regions.