Government Considers Fertiliser Subsidies of Up to Rs5,000 Per Bag for Rabi 2026-27

The government is considering fertiliser subsidies of Rs3,000 to Rs5,000 per bag to support farmers during the Rabi 2026-27 season. However, reported restrictions on fertiliser movement have disrupted supplies to Khyber Pakhtunkhwa and Balochistan.

Federal Minister for National Food Security and Research Rana Tanveer Hussain shared the proposals on Tuesday. He was briefing the National Assembly Standing Committee on National Food Security and Research.

Punjab is considering a subsidy of Rs3,000 per bag. Meanwhile, Khyber Pakhtunkhwa has decided to provide an in-kind subsidy of Rs5,000 per bag.

The committee, chaired by MNA Syed Hussain Tariq, reviewed measures to improve fertiliser availability and manage prices before the Rabi sowing season.

Fertiliser Supply Restrictions Raise Concerns

Restrictions imposed through a Ministry of Interior notification have reportedly stopped fertiliser companies from dispatching supplies to Khyber Pakhtunkhwa and Balochistan.

Agricultural stakeholders warned that prolonged disruptions could affect sowing schedules and crop yields. They also raised concerns about the impact on farmers’ incomes during a critical production period.

Stakeholders urged the federal government to review the restrictions. They proposed allowing fertiliser dispatches to resume under a controlled and monitored mechanism.

They also called for faster implementation of the Track and Trace System across Khyber Pakhtunkhwa. The system would help 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. Regulatory monitoring would remain in place during this period.

Industry Calls for Urgent Resolution

Chashma Sugar Mills Senior Director Iskandar Khan wrote to the Governor of Khyber Pakhtunkhwa, seeking urgent action.

He called for consultations between federal and provincial authorities to resolve the restrictions and restore fertiliser supplies.

Khan warned that prolonged interruptions could affect crop development and agricultural output. He also highlighted the potential consequences for food security in the affected provinces.

Committee Reviews DAP Imports and Fertiliser Taxes

The parliamentary committee welcomed the recent import of 50,000 tonnes of diammonium phosphate (DAP) fertiliser for the Rabi 2026-27 season.

It also recommended that the government discuss regulatory duty and General Sales Tax (GST) on fertiliser imports with the relevant ministry. The proposed review aims 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.

He also called for a standardised subsidy mechanism across provinces and uniform fertiliser prices nationwide.

Wheat Sowing and Support Price Discussed

The committee welcomed reports of record wheat sowing for Rabi 2026-27.

It also noted the announced wheat support price of Rs4,500 per 40 kilograms for the 2026-27 crop.

During the meeting, ministry officials reported that rice production had increased by 8%.

Breeding Stock Duty Exemption Under Review

The meeting also examined the exemption of regulatory duty on imported grandparent and parent breeding stock of chicks.

The issue relates to Pakistan Customs Tariff codes 0105.1100 and 0105.9400.

Officials told lawmakers that duplicate entries in S.R.O. 1064(I)/2026 had created ambiguity. However, the relevant provisions excluded these categories from the duty requirements.

The matter was discussed at the Tariff Policy Board’s 15th meeting in October 2026 at the Ministry of Commerce.

The board unanimously decided to refer the issue to the federal cabinet for consideration and approval.

The standing committee will invite representatives from the Ministry of Finance and the Federal Board of Revenue (FBR) to its next meeting for further discussion.

Committee Approves Seed Amendment Bill

The committee also approved the Seed (Amendment) Bill, 2026, with amendments.

It recommended that the National Assembly pass the legislation after incorporating the proposed changes.