News
Saturday, October 30, 2010
ECC okays relief package for flood-hit farmers* Affected farmers to be provided loans at reduced interest rate of 8 percent instead of 12.5 percent
* Rs 2,400 per acre grant to be provided to for cultivation of Rabi crops
* Proposal for increase in wheat support price rejectedStaff Report
ISLAMABAD: The Economic Coordination Committee of Cabinet (ECC), on Friday, approved a host of measures geared at providing relief to the flood-hit farmers.
The committee met under the chairmanship of Finance Minister Dr Abdul Hafeez Shaikh. Ministers for food and agriculture and petroleum, and senior officials of the ministries concerned attended the meeting. It discussed a two-point agenda of wheat support price and a financial package for the farmers of flood-affected areas. The meeting was presented a proposal calling for an increase in wheat support price to Rs 1,000 per 40 kilogramme from last year’s Rs 950. But the proposal was rejected and the meeting decided to maintain last year’s price.
The meeting decided to extend, through banks, a loan facility to flood-affected farmers at an 8 percent interest rate against the market rates of 12.5 percent. Those farmers who own more than 25 acres of land will also be able to benefit from this initiative. They would be given cash to purchase fertiliser and seed, while those with more than 25 acres of land would be given loans at an eight percent markup.
The meeting decided to provide a grant of Rs 2,400 per acre to the flood-affected farmers/landowners who owned up to 12.5 acres of land. The grant would help in cultivation of Rabi crops. The federal government would provide half the amount and the rest would be provided by the respective provinces. The federal government is transferring the amount in cash while the provinces will decide for themselves whether to provide cash or inputs to farmers.
Separately, United Kingdom’s Department for International Development (DFID) and UN Food and Agriculture Organisation (FAO), on Friday, inked an agreement to extend a relief package to the flood-affected farmers. The package covers provision of wheat and vegetable seeds, fertiliser, animal feed and basic veterinary medicines to 115,800 affected families across the country. Federal Minister for Food and Agriculture Nazar Muhammad Gondal, British High Commissioner to Pakistan Adam Thomson, Head of the DFID-Pakistan George Turkington and the FAO Director General Dr Jacques Diouf attended the signing ceremony.
According to the agreement, the relief package would allow farmers to sow wheat during the current Rabi season, as well as enabling them to grow winter vegetables. It would also help them in becoming food-independent in the next year. Appreciating the assistance, Gondal said the recent flood was unprecedented and most devastating calamity in the country’s history, which severely damaged the agriculture sector. Speaking on the occasion, Diouf said Pakistan’s flood was the greatest disaster in the history of UN and the FAO was committed to providing every possible support to the affected people.
British High Commissioner Thomson said UK continues to help the flood-affected people. He assured that the British government would also contribute in rehabilitation process of the flood-affected areas. “We will continue to encourage Pakistan to set out plans for long term reconstruction, growth, and economic reform,” he said. DFID Head Turkington said more than two million hectares of cultivable land was lost, and it was important to help the farmers in sowing new vegetable and wheat seeds. He also said that DFID would support construction of 40 schools in Khyber Pakhtunkhwa.
Courtesy www.dailytimes.com.pk