Govt to provide Rs37b subsidy on fertilizers to growers
ISLAMABAD: The government would provide Rs37 billion subsidy on fertilizers to growers under its agriculture relief package in order to cope with the COVID-19 aftereffects to maintain food safety and security in the country.
The relief package was also aiming at boosting agriculture production, support farmers and enhance per acre farm income to alleviate poverty from the country.
The subsidy would be provided for next Kharif Season crop, which started from April to October 2020, said a senior official in the Ministry of National Food Security and Research.
Talking to APP, he said a subsidy of Rs925 per bag to DAP and other phosphatic fertilizers and Rs243 per bag on urea and other nitrogen fertilizer had been worked out.
He further informed that estimated urea off-take will be 3.04 million ton and DAP was estimated at 0.95 million ton for the Kharif season.
The subsidy scheme, he said would be implemented by the provinces and the amount would be disbursed through scratch card scheme, already being implemented by Punjab.
He said fertilizer share in cost of production for major crops was around 10 to 15 per cent, adding the provision of subsidy would reduce the cost of production for farmer and increase the affordability of farmer to adopt the recommended level of fertilizer nutrient use and best agricultural management practices.
It may be recalled here that the government has announced a fiscal package of over Rs1,200 billion in the wake of COVID-19 pandemic. Out of this package, an amount of Rs100 billion has been earmarked for relief to agriculture and small and medium enterprises.
Ministry of National Food Security and Research has prepared proposals for incentives to the farmers in various sub-sectors of agriculture to cope with the COVID-19 aftereffects.
The Economic Coordination Committee of the Cabinet had approved a multi-billion agriculture package to provide the farmers subsidy on fertilizers, reduction in bank mark-up on agriculture loans, subsidy on cotton seed and white fly pesticides and sales tax subsidy on locally manufactured tractors. – APP