• Wednesday, May 18, 2022
  • Last Update : 04:24 pm

Farm credit lending target raised 7.98%

  • Published at 05:00 pm July 29th, 2021
A farmer seeks respite from the hot summer
A farmer seeks respite from the hot summer’s sun as he splashes cool groundwater on his face Dhaka Tribune

The disbursement target for the previous FY21 fiscal was Tk26,292 crore

Bangladesh Bank (BB) has raised the agriculture and rural loan disbursement target by 7.98% to Tk28,391 crore for the current fiscal year 2021-22.

The disbursement target for the previous FY21 fiscal was Tk26,292 crore, said the central bank in a release on Thursday.

To combat with the adverse effect of Covid-19 pandemic and to achieve government’s three prime objectives of sustainable development goals (SDGs)- eradication of poverty, ensure safe and nutritious food and developing rural economy through a plenty of credit disbursement in the rural area, said the central bank in its Annual Agricultural and Rural Credit Policy and Program for FY22.

Considering pandemic situation and the increased demand of agricultural and rural credit, disbursement target for the state-owned and specialized commercial banks has been fixed at Tk11,045 crore while the private and foreign commercial banks are tasked to disburse Tk17,346 crore for FY22.

In FY21, all the scheduled commercial banks disbursed agricultural and rural credit of Tk25,511.35 crore against Tk26,292 crore, which is approximately 97.03% of the affixed target, said BB.  

Also Read - BB announces special loan rescheduling for farm credit

The agricultural and rural credits were disbursed among 30,55,166 people in total of which 16,05,947 women borrowers have received Tk9,287.96 crore.

Besides this, 22,45,512 small and marginal farmers have received around Tk17,639.93 crore from different banks.

Moreover, Tk33.96 crore was disbursed among 7,796 farmers of char, haor and less developed areas of the country.

 To ensure the food security of the people and to develop a sustainable agricultural credit system, there are some new inclusions in the current agricultural credit policy.

Some of them are: Credit Norms for rearing 'Sonali Hen' under the poultry subsector, Credit Norms for rearing Buffalo and 'Garol Sheep' under the livestock subsector, reducing interest rate of Agricultural Credit from 9% to maximum 8%, considering the demand of the farmers and actual scenario of farming activities in a particular area per acre credit limit can be increased or decreased up to 15% from the mentioned credit norms in the Agricultural and Rural Credit Policy and  increasing the per acre credit limit for fish cultivation.

Also Read - Farm credit lending reduced to 8%

The central bank said effective steps are taken to supervise the disbursement of agricultural credits.

It is mentionable here that Bangladesh Bank had created a refinance scheme of Tk5,000 crore from its own fund for working capital based agricultural sector to mitigate the crisis due to Covid-19 pandemic through a circular in 2020.

The BB said the tenure of the scheme ended in June, 2021 and under this scheme the scheduled banks have disbursed Tk4,295.14 crore.

Besides this, to disburse agricultural credit to crops and grains sector at low cost to maintain the normalcy of supply and production of foods a circular was issued in 2020 with the instruction of disbursing agricultural credit at 4% concessional interest rate.

Under this scheme Tk4,880.71 crore has been disbursed up to June, 2021.

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