POTENTIAL FOR INDEX INSURANCE IN BARANI AREAS OF PAKISTAN

This paper explores the possibility of utilizing rainfall data and Normalized the Difference Vegetation Index (NDVI) data for developing an insurance product that protects farmers from weather related yield losses of wheat production in Pakistan’s barani areas. This study finds that while rainfall data serves as an effective index, NDVI data (only) partially captures the yield variability in wheat production.

Key words: Pakistan, NDVI, Index Insurance, Barani Areas.