KARACHI: The Kisan Card program is expected to boost the demand for phosphate fertilizers and result in positive yield outcomes for the farmers and support the digitization of rural economy.
Industry experts said that the launch of Kisan Cards is a major milestone for the development of Pakistan's agricultural sector as it will provide targeted subsidies to small farmers, improve their financial inclusion, and digitize the rural economy.
During the first quarter of 2021, urea and DAP sales have witnessed high growth of around 35 percent and 51 percent, respectively. The increase in urea sales can be attributed to higher wheat support prices, better water supplies and availability of urea in the local market at Rs 1717 per bag compared to the global rates of more than Rs 3500 per bag.
At the launch ceremony of Kisan Cards in Multan, Prime Minister Imran Khan also announced to increase the subsidy on DAP (diammonium phosphate) from Rs 500 to Rs 1,000 under Kisan Card. Meanwhile, the federal government's targeted subsidy package on agriculture input remains unmaterialized in Sindh as the provincial government has to date not reached a consensus on its implementation mechanism.
In this regard, Nadir Salar Qureshi CEO of Engro Fertilizers has said Kisan Cards will provide targeted, smart subsidies on agricultural inputs to subsistence small land holding farmers, and other benefits like crop insurance and subsidized loans.
Kisan Cards will reduce inefficiencies and corruption in subsidy disbursement of agricultural inputs, while also improving financial inclusion by adding millions of farmers to the formal banking system, he added.
Appreciating Prime Minister's leadership in prioritizing the transformation of agriculture sector, he said that by delivering such initiatives, the PTI government is living up to its promise of supporting the agricultural sector that is the backbone of Pakistan's economy. When agricultural economics improve the knock-on effects are felt through the entire national economy. The prudent policies of government enabled the agricultural sector to overcome the COVID-19 shock and register record growth in farm economics in the past two years, he added.
With greater access to loans and crop insurance, the influence of 'Arthi' or middle-man will reduce and the farmers would become more empowered to improve their productivity and earnings. "We believe the Kisan Card initiative has put Pakistan's agriculture sector on the road to digitization and documentation of rural economy that will immensely benefit the country in the long-term", he maintained.
Lauding the PM's vision on agriculture development and bringing it on top of the Government's agenda, CEO Engro reiterated that Engro Fertilizers vision is to transform the agricultural landscape of Pakistan. He assured that Engro remains ready to support the Government in bringing his vision on agriculture to life.
Copyright Business Recorder, 2021
Comments
Comments are closed.