Ministry launches mark up subsidy scheme worth Rs12.86b for agri sector

Islamabad-Ministry of National Food Security Research has launched mark up and cotton whitefly subsidy schemes with an amount of Rs12.861 billion under the Fiscal Package announced by the Prime Minister for the agriculture sector to mitigate the impact of COVID-19 pandemic. 

Under the first scheme of markup subsidy an amount of Rs. 6.861 billion would be spent for 10 per cent mark up subsidy on agriculture loans disbursed by Zarai Tarqiati Bank Limited (ZTBL), said a spokesman of the Ministry of National Food Security and Research. 

The scheme is valid all over the Country including AJK and Gilgit-Baltistan. Government of Pakistan would bear mark up @10 per cent on agricultural loan for Fiscal Year 2020-21 i.e July 1, 2020 to June 30, 2021 and individual farmer shall bear balance mark up as per agreed terms. 

Farmers up to 12.5 acres of land holding with Pass Book as collateral are eligible. The subsidy shall also be available on the date of full payment of 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 applicable mark up for the defaulted period.  

All Agri-loans (Production and Development) fall under as per above criteria, are eligible. Farmers are advised to contact nearest ZTBL branch for the adjustment of the subsidy against their loans. 

The second scheme launched by the Ministry of National Food Security Research is cotton whitefly subsidy scheme under the Fiscal Package announced by the Prime Minister for the agriculture sector to mitigate the impact of COVID-19 pandemic. 

Under this scheme an amount of Rs6 billion would be spent as subsidy on purchase of whitefly related pesticides. 

A subsidy @ Rs300/pack of pesticide meant for whitefly is being offered. The subsidy would be Rs300 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 per cent of the cotton area.  The scheme is operational and cotton growers are advised to purchase subsidized pesticides which are available in the market.

Article source: https://nation.com.pk/28-Sep-2020/ministry-launches-mark-up-subsidy-scheme-worth-rs12-86b-for-agri-sector