The Agricultural and Agrarian Insurance Board has introduced a new insurance scheme for coffee cultivation, aiming to support farmers and encourage greater investment in the country’s coffee industry.
According to the Ministry of Agriculture, the scheme will be available to farmers who cultivate coffee in accordance with guidelines issued by the Department of Export Agriculture.
The insurance coverage will apply during the first three years after planting coffee seedlings. Farmers will be required to pay an annual premium equivalent to 7% of the insured value.
Under the scheme, 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 covers a range of risks including drought, floods, wild elephant damage, pest attacks, uncontrollable plant diseases, and losses caused by other animals.
Farmers will also have the option of obtaining additional coverage for accidental fires and landslides by paying an extra premium of 0.5% of the insured amount for each additional risk.
The Agricultural and Agrarian Insurance Board said the initiative is expected to provide greater protection for coffee growers while supporting efforts to expand coffee cultivation and increase production.
Banking & Finance Government Decisions Ministerial Update
Last modified: June 9, 2026
