Assess, compensate drought damage to paddy cultivation, Minister directs Insurance Board

Agriculture Minister Mahinda Amaraweera directed the Agricultural and Agrarian Insurance Board to immediately assess the damage caused to paddy cultivation by the drought.

This follows a discussion Agriculture Minister Mahinda Amaraweera had yesterday (7) with farmer representatives of Anuradhapura district at the Anuradhapura District Secretariat.

Representatives of farmers’ organizations told the Minister that due to the effects of drought in Anuradhapura and as well as in several other districts, the damage to paddy cultivation has increased. Therefore, compensation would have to be given to the farmers.

Accordingly, the Agriculture Minister instructed Agriculture and Agrarian Insurance Board Chairman W.M.M.B. Weerasekara to immediately assess the damage caused to paddy cultivation by the drought, islandwide.

The Agriculture and Agrarian Insurance Board is currently providing free insurance for six crops, such as paddy, chilli, maize, soya bean, potato and Big onion, at Rs.40,000 per acre and Rs.100,000 per hectare, for crop damage due to the weather.

This amount is given without contributions. However, a contribution of Rs.6,400 would facilitate a return of Rs.250,000 per hectare, at the rate of Rs.100,000 per acre.

The Minister was of the view that most of the crops damaged by this year’s drought, were cultivated under the Udawalawa Reservoir and Chandrika Wewa, and hence, the loss to all these farmers cannot be accounted for by only paying crop damage compensation.

I don’t think these crop losses are severe at all. If the farmers are given even one shift of water from Samanala Wewa reservoir, about 60 per cent of the crops currently damaged can be saved.

When the priority of providing water is considered, electricity generation is not the first priority. Accordingly, the priority this time is to provide water for farming.

As a matter of fact, compensation paid to farmers, cannot be consumed. Rice is required for food. Hence, we must release water from Samanala Wewa for paddy cultivation, as priority.

Also, the current compensation for damaged paddy cultivation is insufficient. Therefore, I instructed the Agriculture and Rural Insurance Board to consider an increase in the compensation.

In 2022, this Board spent nearly Rs.1,700 million for crop damage. Hence, it is all but impossible to envisage how much money would be needed to compensate for the crop damage this time.