Islamabad 30 July: The Punjab government has announced a subsidy of Rs 3,000 per bag on DAP (Diammonium Phosphate) fertilizer for wheat farmers during the upcoming Rabi 2025–26 season.
The subsidy is available for farmers owning up to 25 acres of land, but capped at 12 acres per farmer—making them eligible for a maximum subsidy of Rs 36,000 (equivalent to 12 bags of DAP).
The program, expected to cost around Rs 20 billion, aims to benefit nearly 98 percent of wheat growers across the province. The subsidy scheme will be active from November 1 to November 30, 2025.
Wheat production was about 27.6 million tonnes in 2022–23, with Punjab contributing roughly 72 % of total wheat area during 2025–26
Registered Kissan Card dealers will distribute the fertilizer, and will be required to maintain daily transaction records. The process for eligibility verification will be fully digital, using the Fertilizer App, CNIC data from the Punjab Land Records Authority, and biometric checks through NADRA.
Farmers will initially pay their share of the DAP cost, while the subsidy amount will be transferred directly to the dealer’s bank account on the same day.
READ MORE: Punjab Farmers Protest Wheat Price Injustice
The government also plans an awareness campaign promoting modern wheat farming practices such as timely sowing, drill-based cultivation, certified seed use, balanced fertilization, weed management, and efficient irrigation.
Fertilizer Use, DAP Imports, and Subsidy Costs in Pakistan
| Metric | Value / Quantity | Notes / Source Description |
| Annual wheat production (2022–23) | ~27.63 million tonnes | Pakistan Economic Survey |
| Total fertilizer offtake (2023) | ~10.13 million tonnes | PACRA sector data, includes DAP & urea |
| Phosphatic (DAP) offtake (2023) | ~0.58–0.61 million tonnes | DAP ~8 % market share |
| DAP imports (June 2025 alone) | 128,000 tonnes | Stock data |
| DAP local production (June 2025) | ~75,000 tonnes | Domestic DAP production |
| Starting national stock (June 2025) | ~236,000 tonnes | Exporter/importer stocks |
| Total DAP supply (June additions + stock) | ~324,000 tonnes total | June national inventory |
| Import cost per tonne (mid‑2025) | INR 54,160 (~PKR ≈65,000) | Based on Indian prices, comparable to Pakistan |
| Government subsidy per bag of DAP | Rs 3,000 per 50‑kg bag | Punjab subsidy policy |
| Max subsidy per farmer | Rs 36,000 (12 bags) | Capped at farms up to 12 acres |
| Estimated subsidy programme cost | Rs 20 billion | Proposed budget allocation |
