ECC approves PM’s Rabi crops package

ISLAMABAD: The Economic Coordination Committee (ECC) has approved the Prime Minister’s package for Rabi Crops, especially for wheat.
The decision was made in a special meeting of the committee with Adviser on Finance Dr. Abdul Hafeez Shaikh in chair here on Thursday.
According to the package, Rs1,000 per 50 kilogram bag will be given as subsidy on fertilizers; DAP, phosphorus and potassium fertilizers. The federal and provincial governments will share the subsidy in 70 percent and 30 percent ratio.
The federal funds for the subsidy will be directly disbursed to the provinces by the Finance Division on the basis of their share, keeping in view their system strength and overall outreach. The Ministry of National Food Security would examine the provinces’ demand for funds and after its recommendation Finance Division shall transfer the funds to the provinces.
It was also decided that the provinces will expand, improve and up-grade their subsidy disbursement systems. The package will be presented in the next cabinet meeting on Tuesday for approval by the federal cabinet.
Earlier the food security ministry had proposed to the ECC its chalked out agricultural relief package for Rabi season in order to increase wheat production by extending subsidies to wheat farmers.
The package by the name of Prime Minister Rabi Package is intended to pass over relief to farmers in the production cost of the wheat crop according to which per gunny bag of urea will cost Rs1000 less than usual.
Prime Minister Rabi Package is set to subsidize urea cost for farmers by Rs1000 per bag which will translate to a decrease in overall production cost, encouraging farmers to grow more wheat crops.
The federal government is set to bear 70 percent of the subsidy while the relevant province will contribute 30 percent, which means against each bag, the federal government will pay Rs700 and the province will share Rs300 in the total cost.
According to the ECC meeting notification today, a mechanism to serve up the subsidy will be formulated by the board shortly. – TLTP