The modified crop insurance based on weather conditions, which was introduced in East Godav-ari as a pilot project, did not help farmers.

Farmers in the district, which was affected by a crop holiday on the one side and drought on the other, besides delayed release of water for cultivation by the irrigation department, could not avail the facility though it was extended twice from January 8, and later to January 15, from the earlier date of 31 December 2011.

Efforts by the State Level Bankers’ Committee (SLBC) to get further extension was futile as the insurance company did not agree to this. This has deprived about 75,600 farmers in 44 mandals (as 14 mandals were declared drought hit) in the district in opting for fresh loans and for loan rescheduling without insurance coverage to avail interest free loans up to Rs.1 lakh and 3 per cent interest (pavala vaddi) beyond Rs.1 lakh and up to Rs.3 lakh.

This was extended by state government from October 2011 to these sections as part of sops to farmers.

Weather based crop insurance provides insurance coverage from sowing to post harvest till the grain is shifted from the fields within a stipulated time including crop loss due to natural calamities.

Farmers have therefore given undertakings to scheduled banks, expressing their willingness to forego insurance coverage to get the interest benefit extended by state government.

Andhra Bank sources said that they could not get further extension despite hectic efforts through the SLBC.