ECC approves Rs0.5bn subsidy on Potash

ISLAMABAD: The Economic Coordination Committee of the Cabinet (ECC) on Tuesday approved subsidization of Potash to promote balanced use of fertilizer to enhance crop productivity in the country.

The ECC, which met under the chair of Federal Minister for Finance Shaukat Tarin, considered the subject of subsidization of potash.

To provide subsidy of Rs500 per 50kg on the import of MOP/SOP to keep the price of potash at the level of Rs1,900 total financial implication involved would be around Rs0.5 billion.

The subsidy will be on first come first served basis, subject to the achievement of the set target of 50,000 tons and will be admissible to only those importers who import it between July 1, 2009 to March 31, 2010.

The ECC was also briefed by the Ministry of Food and Agriculture about the availability and pricing position of pulses in the country.

The ECC was also informed that the stock of wheat as on December 6, 2009 amounted to 7.805 million tons as against 2.484 million tons in the same period last year, thereby showing a higher stock of about 5.321 million tons compared with last year.