The Punjab government on Wednesday announced a Rs. 15 billion package for farmers amidst protests from farmers over losses incurred due to the withdrawal of the support price mechanism on the direction of the International Monetary Fund (IMF).
The Wheat Support Fund will give direct financial support to 550,000 wheat farmers through the Kissan Card. Additionally, the government exempted wheat farmers from paying irrigation/fixed tax during the current year and assured the provision of free storage Electronic Warehouse Receipt (EWR) facility for four months.
Farmers who store wheat under the EWR system will receive an electronic receipt that will enable them to secure bank loans of upto 70 percent of the total cost of wheat stored. Addtionally, the government announced it would pay the markup on loans up to Rs. 100 billion obtained from the Bank of Punjab to flour mills and green license holders for wheat purchase.
The Punjab government has also decided to seek permission from the federal government for the export of wheat and wheat products, and has lifted the ban on transportation of wheat and flour at provincial and district borders.
According to a statement, Chief Minister Maryam Nawaz has vowed to not let farmers suffer any loss.
However, the Pakistan Kissan Rabita Committee has rejected the package, claiming farmers cannot avail any profits unless they receive Rs. 4,000/maund for wheat. It has alleged the package will primarily benefit feudal lords and millers, while exploiting small farmers.