Punjab announces Rs 15bn aid for wheat farmers via Kisan Card with tax relief.
EWR system offers free storage and loans on stored wheat.
The Punjab government has announced a 15 billion rupee aid package for wheat farmers. The move comes amid protests by farmers in various parts of the province.As part of the initiative, 550,000 wheat farmers will receive direct financial assistance through the Kisan Card. Additionally wheat farmers have been exempted from paying irrigation and fixed taxes for the year.
One of the key features of the package is the introduction of the Electronic Warehouse Receipt (EWR) system. Farmers can store their wheat for four months free of cost and receive an electronic receipt through this system. This receipt can then be presented to a bank within 24 hours to secure a loan of up to 70% of the wheat market value.
However the package also includes major incentives for flour mills and green license holders. The government has committed to paying the markup on loans up to Rs 100 billion provided to these entities for wheat purchases. It will also cover Rs 5 billion in markup costs to encourage the private sector to construct or renovate storage warehouses. The transportation ban on wheat and flour between districts and provinces has also been lifted.
Despite these measures, farmers unions have strongly rejected the package. Farooq Tariq, a General Secretary of the Pakistan Kissan Rabita Committee criticized the plan. He said that it benefits landlords and elite individuals rather than small scale farmers. He insisted that what farmers truly need is a fair rate of Rs4,000 per 40kg for their wheat. Khalid Hussain who is the Chairman of Farmers Itehad also called the package a scheme designed for capitalists. He argued that small farmers lack access to proper storage facilities and will not benefit from the EWR system. He said that the package favors flour mills and wealthy traders.
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