The Agricultural and Agrarian Insurance Board has decided to introduce a new insurance scheme for coffee cultivation as part of efforts to expand coffee production in Sri Lanka, Ada Derana reported, citing the Ministry of Agriculture.
The scheme will be available to farmers who cultivate coffee in line with recommendations issued by the Department of Export Agriculture. Coverage will be provided during the first three years after planting coffee seedlings, with farmers required to pay a premium equivalent to 7 percent of the insured value each year.
Insurance coverage will amount to Rs. 510,000 in the first year, Rs. 660,000 in the second year and Rs. 840,000 in the third year, the broadcaster said.
The policy is designed to protect coffee growers against a range of risks, including drought, floods, damage caused by wild elephants, uncontrollable plant diseases, pest infestations and losses resulting from other animal attacks. Optional coverage for accidental fires and landslides will be available at an additional premium of 0.5 percent of the insured amount for each extra risk.
The Agricultural and Agrarian Insurance Board said the initiative is expected to encourage greater investment in coffee cultivation and support the expansion of the country’s coffee industry.
The Yala-season coverage launch comes alongside other recent farm-support measures, including a 75 percent fertiliser subsidy under a Rs. 8.99 billion Cabinet allocation for Yala paddy and earlier compensation packages such as the Rs. 100,000-per-hectare Yala crop-loss programme. Coffee remains a small but high-potential export crop overseen by the Department of Export Agriculture, which also manages pepper, cinnamon and other spice cultivations.
