In the agricultural sector, risks are inherent and ubiquitous, posing potentially serious consequences for stakeholders and consumers. Risks disrupt supply chains, causing extensive financial and economic losses.

The El Niño weather phenomenon is expected to be the fiercest in 18 years at the start of 2016 and threatens to adversely affect crop and livestock production prospects in Southern Africa, according to the Food and Agriculture Organization (FAO) of the United Nations.

As a source of livelihood, agriculture (including forestry and fishing) remains the largest sector of Indian Economy. While its output share fell from 28.3% in 1993-94 to 14.4% in 2011-12, employment share declined from 64.8% to 48.9% over the same period. Therefore, almost half of the workforce in India still remains dependent on agriculture.