ISLAMABAD: An inter-ministerial meeting on Kissan Package-2022 was informed that use of DAP and urea fertilizer has declined due to higher prices and supply issues.

The meeting presided over by Minister for National Food Security and Research, Tariq Bashir Cheema was attended by Minister for Industries and Production, Syed Murtaza Mehmood, Advisor to PM on Establishment, Ahad Khan Cheema, SAPM on Youth Affairs, Shiza Fatima Khawaja and officials of concerned Ministries and State Bank of Pakistan.

According to official sources, the meeting was further informed that average DAP price on March 30, 2023 was Rs 10.431 per bag, whereas during January-March 2023, offtake was 237,000 tons which is 4.4 per cent less than the same period last year. It was also apprised that average price of urea is Rs 2799/bag which is higher than fixed price of urea. During January-March offtake was 1,624,000 tons which is 0.6 per cent less than the same period last year. It was pointed out that there are management issues at districts level.

DAP fertilizer price once again crosses Rs10,000 level

While discussing Kissan Package-2022, Economist Consultant, M/s Ministry of National Food Security and Research highlighted that credit disbursement is still disproportionate to farm size, province-wise and city-wise.

During discussion on enhancement of agri-loans to Rs 1.819 billion from Rs 1.419 billion, the representative of State Bank of Pakistan informed the meeting that updated city -wise data will be shared by SBP. Secretary M/s NFS&R asked about the concept paper, and SBP informed that it cannot lead in the formation of a database of farmers due to its conflict of interest being a monitor of commercial banks.

He further added that first the government is to make the database with the help of concerned federal and provincial departments then SBP will direct the commercial banks to follow the directions and start lending to small farmers based on the information available in the database.

The meeting decided that SBP will share city-wise disbursement data with the Ministry of National Food Security and Research.

The meeting also discussed waiver of mark-up on outstanding loans of subsistence farmers in the flood affected areas.

The meeting was apprised that as of March 24, 2023, 37 banks/MFBs have communicated about mark-up waiver of Rs 3.076 billion. The claims are being reviewed at DFSD (SBP-BSC) level for onward submission to Finance Division for reimbursement. As per scheme, 50 per cent of the waived amount will be borne by government.

Representative of the SBP informed the meeting that information of claims after audit has been shared with Finance Division for further necessary action whereas representative of Finance Division updated the meeting that he has not received this information yet. It was decided that SBP will coordinate with Finance Division, which will take action by April 15, 2023.

Updating on provision of subsidy for interest-free loans for subsistence farmers in the flood affected areas, the meeting was informed that as of March 24, 2023, Rs 2.4305 billion has been disbursed to 12,828 borrowers under this scheme.

Secretary M/s NFS&R enquired why number of borrowers and disbursement is low in this scheme. Representative of SBP informed the meeting that Kissan Package-2022 was announced after the start of the recent Rabi season which is why the number of borrowers are less in the scheme, and expressed the hope that number of borrowers will increase in current Kharif season.

Under PM’s Youth Business and Agriculture Loan scheme, the target of Rs 30 billion has been assigned to 15 banks for SME and agriculture sector, of which Rs 15 billion will be disbursed to agriculture sector. The PMYBALS portal was launched on March 24, 2024 and Rs 1.420 billion have been disbursed to 1,153 farmers.

Secretary M/s NFS&R raised the point that data on type of business is not being shared by SBP. However, SBP representative clarified that data is being collected by Prime Minister Youth Office.

During discussion on mark-up subsidy for risk sharing scheme for farm mechanization, the meeting was informed that based on the GoP allocations under this scheme, SBP has allocated limits of Rs 56 billion to 24 banks including Islamic banks in line with the already allocated target for farm mechanization (tractor, thresher, combined harvester, planter, tubewell, etc) M/s NFS&R, jointly with PM Office, has developed an online portal within PMYALS for processing of loans under this scheme.

Copyright Business Recorder, 2023