Govt launches markup subsidy scheme for farmers to mitigate COVID impact

In order to mitigate the impact of the Covid-19 pandemic, the Ministry of National Food Security & Research has launched a markup subsidy scheme under the Fiscal Package announced by the Prime Minister for the agriculture sector.

As per details, an amount of Rs 6.861 billion would be spent for a 10 percent 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.

Under the scheme, the government would bear a markup 10pc 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.

Furthermore, the Ministry of National Food Security & Research has also launched a cotton whitefly subsidy scheme under the Fiscal Package announced by the Prime Minister.

An amount of Rs6bn would be spent as subsidy on purchase of whitefly related pesticides. A subsidy at the rate of Rs. 300/pack of pesticide meant for white fly is being offered. The subsidy would be Rs.300 per application at an average of 4 applications per acre and will cover 5 million acres in Punjab and Sindh Province, which is around 80pc of the cotton area.

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