ECC approves Rs10 billion subsidy for small rice farmers

Power subsidy for agriculture consumers also approved

ISLAMABAD: The Economic Coordination Committee (ECC) of the Cabinet on Thursday approved a rice subsidy package worth Rs10 billion for small farmers who have 25 acres of land, Radio Pakistan reported.

During the ECC meeting in Islamabad on Thursday, chaired by Finance Minister Ishaq Dar, it was decided that basmati rice farmers will be compensated at a rate of Rs5,000 per acre.

It was further decided that the compensation amount will be shared equally by the federal and provincial governments.

However, it was decided that this compensation will be limited to small growers of 25 acres only.

Additionally, farmers who have already received compensation against crop damage suffered during the recent floods in Punjab will not be eligible for this compensation.

Subsidy on electricity for farmers

The committee also approved a proposal to extend power subsidy to farmers.

Under this programme, agriculture consumers will be able to avail electricity at a special rate of Rs10.35 per unit till June 30, 2015.

Dar said this subsidy will cost the exchequer around Rs22 billion, compared to Rs18.5 billion last year.