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.
According to 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.
Under the proposed insurance program, coverage will be provided during the first three years after planting coffee seedlings. Farmers will be required to pay a premium equivalent to 7 percent of the insured value for each year.
The 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 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.
Additionally, growers will be able to obtain optional coverage for accidental fires and landslides by paying an extra premium of 0.5 percent of the insured amount for each additional risk covered.
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.
