Government weighs fertiliser subsidy amid supply disruptions

Punjab considers Rs3,000 per bag subsidy, KP decides on Rs5,000 in-kind support; NA panel welcomes import of 50,000 tonnes of DAP and Rs4,500 per 40kg wheat support price The government is considering fertiliser subsidies ranging from Rs3,000 to Rs5,000 per bag to support farmers during the Rabi 2026-27 season, even as restrictions on fertiliser movement have reportedly disrupted supplies to Khyber Pakhtunkhwa and Balochistan. Federal Minister for National Food Security and Research Rana Tanveer Hussain informed the National Assembly Standing Committee on National Food Security and Research on Tuesday that Punjab was considering a subsidy of Rs3,000 per bag, while Khyber Pakhtunkhwa had decided to provide an in-kind subsidy of Rs5,000 per bag. The committee, chaired by MNA Syed Hussain Tariq, was briefed on government measures to address fertiliser availability and prices ahead of the Rabi sowing season. Meanwhile, restrictions imposed under a Ministry of Interior notification have reportedly prevented fertiliser companies from dispatching supplies to Khyber Pakhtunkhwa and Balochistan, raising concerns over the timely availability of agricultural inputs. Agricultural stakeholders warned that prolonged disruptions could affect sowing schedules, crop yields and farmers' incomes during a critical period for agricultural production. They urged the federal government to review the restrictions and allow fertiliser dispatches to resume under a controlled and monitored mechanism to prevent unauthorised movement or diversion of supplies. Stakeholders also proposed accelerating the implementation of the Track and Trace System across Khyber Pakhtunkhwa to monitor fertiliser distribution and improve transparency without interrupting agricultural activities. Under the proposed arrangement, fertiliser companies could receive general permission to dispatch supplies until the tracking system becomes fully operational, subject to regulatory monitoring. In a letter to the Governor of Khyber Pakhtunkhwa, Chashma Sugar Mills Senior Director Iskandar Khan called for urgent consultations between federal and provincial authorities to resolve the restrictions and restore supplies. He warned that prolonged interruptions could affect crop development, agricultural output and food security in the affected provinces. Separately, the parliamentary committee welcomed the recent import of 50,000 tonnes of diammonium phosphate (DAP) fertiliser for the Rabi 2026-27 season. It recommended that the government take up the issue of regulatory duty and General Sales Tax (GST) on fertiliser imports with the relevant ministry to facilitate imports and reduce fertiliser prices. Committee Chairman Syed Hussain Tariq directed the Ministry of National Food Security and Research to ensure support for farmers and called for a standardised subsidy mechanism across provinces, along with uniform fertiliser prices nationwide. The committee also welcomed the reported record wheat sowing for Rabi 2026-27 and the announcement of a wheat support price of Rs4,500 per 40 kilograms for the 2026-27 crop. Ministry officials informed the committee that rice production had increased by 8%. The meeting also examined the exemption of regulatory duty on imported grandparent and parent breeding stock of chicks under Pakistan Customs Tariff codes 0105.1100 and 0105.9400. Officials informed lawmakers that ambiguity had arisen because of duplicate entries in S.R.O. 1064(I)/2026, despite the exclusion of these categories from the relevant duty provisions. The matter was placed before the Tariff Policy Board during its 15th meeting in October 2026 at the Ministry of Commerce, where the board unanimously decided to refer it to the federal cabinet for consideration and approval. The standing committee decided to invite representatives of the Ministry of Finance and the Federal Board of Revenue (FBR) to its next meeting for further discussion. The committee also approved the Seed (Amendment) Bill, 2026, with amendments and recommended that the National Assembly pass the legislation incorporating the proposed changes.