ECC approves Rs 24.26 billion fertilizer subsidy

The Economic Coordination Committee (ECC) of the cabinet here on Thursday approved Rs 24.26 billion subsidies on fertiliser for Kharif Crops 2022 and also enhanced the Minimum Support Price (MSP) of Wheat Crop 2021-22 from Rs.1,950/40 Kg to Rs 2,200/ 40 Kg.

The meeting was chaired by Federal Minister for Finance and Revenue, Shaukat Tarin while among others it was attended by Federal Minister for National Food Security & Research (NFS&R), Syed Fakhar Imam, Minister of Energy Hammad Azhar, Adviser to the Prime Minister on Commerce and Investment, Abdul Razak Dawood, Governor SBP, Federal Secretaries and other senior officers.

The subsidy disbursements would be made billions through provinces using their existing mechanism on a sharing basis (50:50) for Phosphatic Fertilisers along with direction to strengthen the tracking system. The federal government share will be Rs 12.13 billion, the statement added.

The committee also approved an extension in the date for subsidy disbursement to farmers to June 30, 2022. The summary for extension in date for subsidy disbursement to the farmers on Kharif crop during 2021 on fertiliser (DAP), cotton Seed and Whitefly related pesticides, under Prime Minister’s package for agriculture in 2020-21 was presented by the Ministry of NFS&R.

The federal government has already released Rs 3.890 billion to the Sindh province and Rs 0.541 billion to Baluchistan for the subject scheme, the statement added.

The ECC approved the wheat procurement target of Sindh to the level of 1.40 MMT, along with a Cash Credit Limit (CCL) of Rs 77.00 billion and the target of Baluchistan to the level of Rs 0.10 MMT along with CCL for the amount of Rs 6.20 billion.

Wheat procurement target for Punjab to the tune of 4.00 MMT with a Cash Credit Limit of Rs. 220.00 Billion. Khyber Pakhtunkhwa was allowed to procure 0.20 MMT from the Punjab Food Department with their own financial arrangements.

The Cash Credit Limit (CCL) of PASSCO was also revised from Rs. 65.00 Billion to the level of Rs. 72.50 Billion @ Rs. 2,200/40 Kg for procurement of 1.20 MMT of Wheat.

ECC also approved a Supplementary Grant of Rs. 50 Billion to Power Division and Rs. 4.5 billion in favour of the Ministry of Commerce for Export Development Fund (EDF).

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