October 29, Colombo (LNW): Tea nursery operators and cultivators in Sri Lanka can now obtain financial protection against natural disasters, diseases and pest attacks under a new insurance programme introduced by the Agricultural and Agrarian Insurance Board.
The Board, which functions under the Ministry of Agriculture, Livestock, Lands and Irrigation, said the initiative was designed to reduce the financial burden on tea growers affected by unforeseen events while supporting the long-term sustainability of the country’s tea industry.
The policy covers losses arising from uncontrollable natural hazards, including floods, droughts and landslides, as well as diseases and pest infestations that cannot be controlled. By providing a financial safety net, the scheme is intended to help growers manage unexpected setbacks and continue their agricultural activities.
Eligibility is limited to tea nurseries and plantations registered with the Tea Small Holdings Development Authority or registered as businesses. Applicants must also comply with cultivation and management practices recommended by the Tea Research Institute.
Under the new arrangement, registered tea plant nurseries are entitled to insurance coverage calculated at an annual rate of Rs. 35 per plant. This provision is intended to help nursery operators manage the financial risks associated with raising young tea plants.
Tea cultivators, meanwhile, can secure insurance protection of up to Rs. 1 million per acre for a maximum period of four years. The coverage applies from the planting of new tea plants until the commencement of harvesting, offering protection during the establishment phase before the crop begins generating income.
The annual premium for both nursery and cultivation policies has been fixed at 6 per cent of the insured value. Growers considering the scheme should therefore assess the applicable premium against the level of coverage required for their operations.
The Board said the programme was expected to strengthen the resilience of Sri Lanka’s tea sector by helping producers cope with risks that could otherwise cause substantial financial losses. The initiative is also intended to encourage investment in tea cultivation and provide greater security for growers operating in an industry that makes a significant contribution to the country’s foreign exchange earnings.
Tea remains an important component of Sri Lanka’s agricultural economy, making the protection of plantations and the development of new cultivation areas particularly significant. Officials believe that improved access to insurance could help growers manage the uncertainties associated with weather conditions and other threats to production.
Tea nursery owners and cultivators seeking further details about eligibility, premiums and the application process can contact their nearest district office of the Agricultural and Agrarian Insurance Board or call its hotline on 1918.
