Rs. 5 b to repay cultivation loans

The Agricultural Insurance Board has stepped into repay the cultivation loans through a special insurance cover.

All farmers who obtain cultivation loans through the Bank of Ceylon, Peoples Bank or the Ruhunu Development Bank will gain crop insurance cover under this scheme.

The Agricultural Insurance Board has entered into a Memorandum of Understanding with these banks in this connection, Board Chairman Mervyn Gunasekera said.

The constitution of other Regional Development Banks would also be obtained for this new insurance scheme designed to provide protection to small farmers contributing their energies towards the Government's 'Api Wawamu Rata Nagamu' food production drive. A sum of Rs. 5 billion has been allocated in this 2009 Budget for repayment of agricultural loans under the 'Api Wawamu Rata Nagamu' programme.

There are 1,036 rural agricultural companies registered under the 'Gami Diriya' programme in seven districts.

Members of these companies would also be enrolled into this insurance scheme shortly Gunasekera said.