ISLAMABAD: The government would provide subsidy of Rs37.00 billion on fertilizers to growers under its agriculture relief package in order to cope with the Covid-19 after-effects to maintain food safety and security in the country.
The relief package also aims to boost 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, said a senior official in the Ministry of National Food Security and Research.
Talking to APP on Thursday, he said that a subsidy of Rs925 per bag to DAP and other phosphatic fertilizers and Rs243 per bag on urea and other nitrogen fertilizer has been worked out.
He further informed that estimated urea off take will be 3.04 million tonnes and DAP was estimated at 0.95 million tonnes for the Kharif season. The total amount of the subsidy would be Rs37 billion, he added.
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 the Punjab government.
He said that the fertilizer share in cost of production for major crops was around 10 to 15 per cent, adding that provision of subsidy will reduce 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 is pertinent to mention 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, Rs100 billion have 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 after effects.
The Economic Coordination Committee (ECC) of the federal 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.
