ECC approves Rs 1000 per bag fertilizer subsidy

Aftab Ahmed

The Economic Coordination Committee (ECC) on Thursday approved Rs.1000 per bag subsidy on fertilizer under 50 kg bag.

The ECC approved the subsidy under PM’s Package for Rabi Crops in a bid to provide relief to farmers.

Moreover, the government will give Rs.1000 per 50 kg bag subsidy on fertilizers; DAP, P, and K fertilizers. However,  T]the Federal and Provincial government will share the subsidy by 70% and 30% ratio.

https://newztodays.com/fertilizer-sales-increased-on-fear-of-gas-price-hike/

Adviser to the Prime Minister on Finance Dr. Abdul Hafeez Shaikh chaired the special meeting in a bid to approve the package.

The Federal Cabinet constituted a special committee in its meeting held on October 27, 2020, to design the package.

The government said that the package would help increase the production of wheat in the country.

The government will give subsidy on weedicides at Rs. 250 per acre and fungicides at Rs.150.  The provinces will distribute the subsidy in their already prevalent manner. The government will directly disburse the subsidy to provinces through Federal funds.

The Finance Division will disburse to provinces based on their share, keeping in view their system strength and overall outreach.

However, the Ministry of National Food Security would examine the provinces’ demand for funds.

As a result of its recommendation, the Finance Division shall transfer the funds to the provinces. Meanwhile, ECC also decided to ask provinces to upgrade their subsidy disbursement systems. The cabinet will consider the package in the next Cabinet meeting on Tuesday for approval.