Sri Lanka’s Agricultural and Agrarian Insurance Board (AAIB) has officially declared February 2026 as “Farmers’ Insurance Month”, a nationwide initiative aimed at making crop insurance more accessible to farmers across all regions. The campaign, overseen by the Ministry of Agriculture, Lands, Animal Husbandry, and Irrigation, seeks to raise awareness about insurance products and their benefits through month-long educational outreach.
During this special month, farmers will be able to obtain insurance for a variety of crops and production risks. Coverage will include losses due to weather-related hazards, pest and disease infestations, animal attacks, fires, floods, and droughts. Reportedly, insured crops include staples such as rice, maize, potatoes, onions, soybeans, chillies, and other locally grown produce.
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Premium Structure and Examples
The AAIB has outlined a clear premium structure, along with indicative compensation limits, allowing farmers to plan and compare potential returns versus insurance costs. Examples of premiums for selected crops are shown in the table below:
| Crop Type | Insurance Coverage (per acre, LKR) | Premium Rate | Example Premium (LKR) |
|---|---|---|---|
| Lentils, Mung Dal, Finger Millet, Sesame, Horse Gram | 60,000 | 7% | 4,200 |
| Sweet Potato, Cassava, Cabbage, Beans, Tomato, Pumpkin | 100,000 | 7% | 7,000 |
| Ginger, Turmeric, Cinnamon, Chillies, Pineapple, Papaya, Banana | Market value of crop | 7–10% | Varies |
This structured approach enables farmers to estimate both premium costs and potential yield compensation, particularly for high-value cash crops, thereby reducing income-related risks. Special schemes have been designed for crops with high market dependence.
Distribution and Support
Farmers seeking more information or wishing to enrol can contact the AAIB headquarters or local district offices. Regional offices will provide guidance on eligibility, premium calculations, policy terms, and claims procedures, while assisting with registrations throughout February.
Global Context
Worldwide, the agricultural insurance market is expanding rapidly. According to Allied Market Research, the market was valued at $38.5 billion in 2022 and is projected to reach $67.4 billion by 2032, growing at an annual rate of 5.8%. Multi-Peril Crop Insurance (MPCI) represents both the largest segment and the fastest-growing category globally.
Asia-Pacific Impact
Farmers in the Asia-Pacific region face challenges including seasonal weather variability, price volatility, climate change, and disease outbreaks. For smallholder farmers, premiums can often be burdensome, making government support and subsidies crucial. Sri Lanka’s 2026 Farmers’ Insurance Month will serve as a practical example of how government-backed schemes and a national office network can increase the accessibility of crop insurance for small and large-scale farmers alike.