Procurement News Notice |
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| PNN | 5533 |
| Work Detail | Punjab government would provide interest-free loan of Rs80 billion to small farmers in the province from October this year though its mobile-assisted farming initiative, sources said on Saturday. Around 4.5 lakh small farmers, having less than 12.5 acres of land, will be given interest-free loan in the province as general elections are less than two years away. The programme titled ‘Interest Free Credit & Smartphones to Farmers’ has initially allocated Rs20.13 billion loan disbursement to at least 4.5 lakh small farmers. Input finance of Rs25,000/acre for Rabi season (October-March) and Rs40,000/acre for Kharif season (April-September) will be given to farmers through mobile phone-based transactions. By ensuring savings of 20-40 percent in inputs cost, these loans will be utilised for buying farm inputs including seed, pesticides and fertiliser and will benefit farmers owning 1.8 million acres of land. Farmers are expected to save 20-40 percent in inputs costs. The initiative, part of Chief Minister Kissan Package 2016, aimed to increase farmers’ income to the tune of Rs4,200/acre. Hence, it is envisaged that this intervention will lead to contribution of Rs12 billion in the GDP. The loan distribution would be increased to Rs100 billion and smart phones would be given to over five million small farmers, living in the province in the next five years. Punjab Agriculture Department is working on database of farmers and addressing other allied issues pertaining to farming community, while Punjab Information Technology Board is taking care of mobile technology related aspect of the planned initiative. Both the departments are actively working to implement tech-driven solutions for better production of crops. Implementation of a ‘Cognitive System’, powered by PITB, will facilitate agriculturalists and farmers to improve their business prospects through knowledge based decisions. Under the Kissan package, the idea of providing farmers with an e-credit facility was based on the notion that it would enable farmers to buy necessary inputs with much ease. It can also be dubbed as agricultural reformation through smart use of technology. The mechanism will surely facilitate farmers and at the same time will improve business prospects for fertiliser, seed and pesticide companies. As per PITB, the end goal of this tech-based intervention is to increase the farm yield and bring financial benefit to the farmers through the indigenous decision-making system. A systematic way of communication would be established among farmers and other stakeholders through easily-accessible app with a view to disseminating timely and relevant information about best farming practices. Latest rates of inputs and various crops would also be informed to farmers though smart phones coupled with weather and other advisories. Another important component of Kissan Package is to provide subsidy to farmers on provision of cheap fertilisers. Government has taken measures to reduce prices of Diammonium phosphate, urea & potash fertilisers by more than 17 percent with the cost of Rs11.60 billion. It will help 5.2 million farming families in using fertilisers for their crops, ensuring better soil health of 31 million acres of land. The intervention will result in reduction of 2.5-8 percent in cost of production, while 3-5 percent in yield increase, providing additional income of Rs2,200/acre. This intervention will alone help in contributing Rs77 billion in the GDP. In addition to other components of Kissan Package, there are 42 interventions of Rs13.5 billion (25 ongoing and 17 proposed), which are being implemented from annual development program of provincial budget whose ultimate goal is to uplift the farming community, as per official claim. |
| Country | Pakistan , Southern Asia |
| Industry | Food & Agriculture |
| Entry Date | 15 Oct 2016 |
| Source | https://www.thenews.com.pk/print/147534-Punjab-to-disburse-interest-free-loans-to-farmers-through-smartphones# |
