Punjab okays 70% loan-for-wheat scheme

The Punjab government has approved a 70% loan scheme for farmers in exchange for wheat, aiming to build strategic reserves of 2.5 million metric tonnes.

Sources from the Punjab Food Department said the 'e-warehouse receipt system' will be activated swiftly to facilitate the initiative. To support the scheme, Rs1.029 billion will be allocated for the repair of government warehouses, with old premises being upgraded through the communications and works department or PASSCO. A digital dashboard will be created to monitor the loans issued to farmers, tracking daily reserves and receipts. In a bid to strengthen the procurement, the government has proposed increasing the wheat procurement funds from Rs51 billion to Rs64 billion.

Unused government warehouses will be allocated to the private sector and in the event of a market downturn, the government will purchase wheat itself.

To oversee this process, district strategic reserve committees will be established to manage the purchase, storage, and monitoring of wheat stocks.