MinNFS&R launches markup subsidy scheme for agriculture sector

ISLAMABAD, Sep 27 (APP): Ministry of National Food Security and Research has launched markup subsidy scheme under the Fiscal Package announced by the Prime Minister for the agriculture sector to mitigate the impact of Covid-19 pandemic.

An amount of Rs. 6.861 billion would be spent for 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, a press release issued on Sunday said. The government would bear markup at rate 10% on agricultural loan for Fiscal Year 2020-21, starting from 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 and 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.

Ministry of National Food Security and Research has launched cotton whitefly subsidy scheme under the package and amount of Rs. 6.00 billion would be spent as subsidy on purchase of whitefly related pesticides.

Besides, a subsidy, Rs. 300 per pack of pesticide meant for white fly is being offered and 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% of the cotton area.

The scheme is operational and cotton growers were advised to purchase subsidized pesticides which available in the market.