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Historical mean daily rainfall (4.18 mm vs 4.12 mm, t = -0.11) and historical coefficient of variation (0.868 vs 0.845, t = -0.16) were statistically indistinguishable between payout and non-payout villages, confirming that 2011 payouts were driven by exogenous weather shocks rather than baseline risk differences.
Contract payouts triggered in 4 villages in Andhra Pradesh, dispensing tiered indemnity cash payouts of Rs. 300, Rs. 750, or Rs. 1,200 per unit purchased depending on the duration of monsoon delay.
Payouts ranged from Rs. 300 (15-day delay) to Rs. 1,200 (25-day delay) per unit; 14–15% of the sample households experienced qualified payouts across 4 Andhra Pradesh villages during the 2011 Kharif season.
Employers maximize profit by offering the lowest piece rate (5 MWK) combined with quality monitoring, exploiting low worker bargaining power. For male workers, monitoring at low piece rates increases employer profit by nearly 50% compared to unmonitored contracts.
Reducing frequent mm deficit payouts lowered willingness to pay by Rs. 11.90 (despite a modest expected value drop of Rs. 10–20), whereas raising the catastrophic exit threshold increased willingness to pay by only Rs. 10.86 (despite a massive expected value increase of Rs. 40–70).