Coconut farmers covered under dedicated insurance scheme, government clarifies

New Delhi: Coconut is not currently notified under the Pradhan Mantri Fasal Bima Yojana (PMFBY) by any State Government or Union Territory, the Government of India has informed the Lok Sabha.

The clarification came in response to Lok Sabha Starred Question No. 321 regarding the inclusion of coconut under PMFBY.

According to the Agriculture and Farmers Welfare Ministry, PMFBY provides for coverage of food crops, oilseeds and commercial/horticultural crops, subject to the availability of past yield data based on Crop Cutting Experiments (CCEs), as well as the capacity of State Governments to conduct the required number of CCEs or adopt the YES-TECH system for assessing crop yields and calculating claims.

For crops that do not meet these conditions, States can notify them under the Restructured Weather Based Crop Insurance Scheme (RWBCIS), where claims are calculated based on weather index parameters. The notification of a particular crop under PMFBY or RWBCIS is the prerogative of the concerned State Government. The Government said no State has notified coconut under either scheme so far.

Dedicated insurance scheme for coconut palms

The Government has also pointed to an existing dedicated insurance mechanism for coconut. The Coconut Palm Insurance Scheme (CPIS) is administered by the Coconut Development Board (CDB) in association with the Agriculture Insurance Company of India Ltd. (AIC).

The scheme is available for implementation in all coconut-growing States and Union Territories, subject to administrative approval and financial sanction from the concerned State or UT.

Under CPIS, the insurance premium is shared between the Coconut Development Board, the State Government and the farmer in a 50:25:25 ratio.

The scheme provides compensation for total loss of coconut palms or palms becoming unproductive due to several risks, including storms, hailstorms, cyclones, typhoons, tornadoes, heavy rains, floods and inundation. It also covers widespread pest and disease damage, accidental and forest fires, lightning, earthquakes, landslides, tsunamis, severe drought and consequential total loss.

The Government's response was given by Union Agriculture and Farmers Welfare Minister Shri Shivraj Singh Chouhan in the Lok Sabha on August 11, 2026.