Another advantage of weather insurance is that it can be sold to small farmers, as no monitoring is needed to verify farm-level losses, tte Indian experience demonstrates that small farmers find value in weather insurance. BASIX, India's largest microfinance organization based in Andhra Pradesh, estimates that all of the 427 farmers who bought weather insurance policies in 2003 have small to medium-sized farms ranging from two to ten acres, producing average annual incomes of 15,000 to 30,000 Rupees, that is an average income of USS1 to USS2 per day. Currently, many farmers buying weather insurance in India are repeat customers whose low-income status does not limit them from buying the product. Early survey results demonstrate that more than half of those purchasing insurance products list managing risk as their primary reason. Some opt for insurance over the prospect of paying high interest to moneylenders when cash is urgently needed following harvest failure.
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