Prime Minister Shehbaz Sharif Monday announced a Rs. 1.8 trillion package to facilitate the farmers by providing free seeds, inexpensive loans, and a reduction in electricity and fertilizers prices.
Announcing the package during a press conference, he said that Rs. 10.6 billion have been allocated for small farmers across the country, while Rs. 8 billion would be given to the farmers in the flood-hit areas.
Besides, unemployed youth in rural areas will be given loans of Rs. 50 billion and Rs. 6.5 billion will be given as a subsidy to waive off the markup on these loans, he said.
The prime minister said that the prices of Di-Ammonium Phosphate (DAP) fertilizer would be reduced by Rs. 2,500 per bag, providing a benefit of Rs. 58 billion to the farmers. The price of a DAP bag would come down to Rs 11250, he said, adding that the prices of DAP have been brought down after tough negotiations with the fertilizer manufacturers.
Informing of urea import, he said that 200,000 tonnes of urea has already been imported while half-a-million tonnes would be imported further at reduced rates. The government will give subsidy to the tune of Rs. 30 billion to give fertilizers to farmers at lower rates, he added.
The prime minister also announced the distribution of 1.2 million bags of certified seeds worth Rs. 13.20 billion among the farmers. He mentioned that both federal and provincial governments will share the required funds in this regard. The government has also decided to import 2.6 million tonnes wheat, with 1 million tonnes already imported while the remaining 1.6 million tonnes is to be imported soon, he added.
The landless farmers in the flood-affected areas will be given Rs. 5 billion, he said, adding that small and medium enterprises (SMEs) working in the agriculture sector would also be provided loans of Rs. 10 billion for modernization.
The premier also announced providing a relaxation of 50 percent duties on the import of five-year-old tractors. He mentioned that the government would encourage the entry of new tractor manufacturers by bringing down the duties on completely knocked-down kits from 35 percent to 15 percent.
Announcing the loans for the polarization of tube wells, he said that under the new package, the government would provide interest-free loans for 300,000 tube wells for their solarization. Besides, a subsidy to the tune of Rs. 43 billion will also be provided to farmers in paying loans for solarized tube wells, the premier announced, adding that Finance Minister Ishaq Dar would ensure the delivery of loans to farmers.
The government has also decided to fix the electricity cost at Rs. 13 per unit for the tube wells, he announced.
Highlighting the devastation caused by the flood, the prime minister said that the package would aid in the rehabilitation of farmers, particularly those who lost their standing crops as a result of the flood. Flood affectees have already been provided financial assistance of Rs. 88 billion, he said.
