Chief Minister of Punjab Maryam Nawaz has announced a Rs. 15 billion wheat relief package to support farmers of the province.
The package features relief measures in taxes and direct financial assistance by way of a wheat support fund for some 550,000 farmers.
Farmers will be paid a decent price for their wheat cultivation, as per Maryam Nawaz. “I will not allow the farmers to incur losses,” she said, assuring that the government is with the farming community.
Under the package announced, financial assistance will be given directly to wheat growers through the “Kisan Card.” Besides, irrigation charges (abiana) and fixed taxes have been exempted to further relieve the farmers.
The provincial government has also relaxed restrictions on the free movement of wheat and flour across provincial and district boundaries. To protect the supply of wheat from market fluctuations and climatic influences, the government will provide free storage facilities for four months.
An electronic warehouse receipt (EWR) system is also planned to be rolled out. It will give farmers an electronic receipt once their wheat is stored, and this can be shown to banks within 24 hours in order to receive loans for up to 70% of the entire value of the crop.
Furthermore, the government will bear the mark-up on loans of up to Rs. 100 billion by the Bank of Punjab given to flour mills and grain licensees for wheat purchases. Moreover, funding for the construction and refurbishment of private sector grain storage warehouses will be made available.
In order to enable wheat storage for farmers, the Punjab government has provided Rs. 5 billion to fund the markup on storage loans. The cabinet will also approve a policy mandating flour mills and grain licensees to purchase and stock at least 25% of their total storage capacity in wheat immediately.
The provincial government intends to coordinate with the federal government on the export of wheat and wheat products.
