The Ministry of National Food Security and Research has launched a markup subsidy scheme under the Fiscal Package announced by the Prime Minister for the agriculture sector to mitigate the impact of the Covid-19 pandemic.
An amount of Rs. 6.86 billion will be spent on a 10% markup subsidy on agriculture loans disbursed by Zarai Tarqiati Bank Limited (ZTBL).
The scheme is valid all over the country including AJ&K and Gilgit-Baltistan, said a press release. The government will bear a markup rate at 10% on agricultural loan for Fiscal Year 2020-21, starting from July 1, 2020, to June 30, 2021, and individual farmers shall bear balance mark up as per agreed terms.
Farmers with up to 12.5 acres of landholding with Pass Book as collateral are eligible and subsidy shall also be available on the date of full payment of a loan or the due date, or up to June 30, 2021, whichever is earlier.
In case of default, the borrower shall be liable to pay the applicable mark up for the defaulted period. All Agri-loans (Production and Development) fall under as per the above criteria, are eligible.
Ministry of National Food Security and Research has launched a cotton whitefly subsidy scheme under the package and amount of Rs. 6.00 billion will be spent as a subsidy on the purchase of whitefly related pesticides.
Besides, a subsidy, Rs. 300 per pack of pesticide meant for whitefly is being offered and the subsidy will be Rs. 300 per application at an average of 4 applications per acre and will cover 5 million acres in Punjab and Sindh province, which is around 80% of the cotton area.
The scheme is operational and cotton growers were advised to purchase subsidized pesticides which available in the market.
