♦ Tk12,615cr disbursement target set for state-owned commercial and specialised banks

♦ Tk25,385cr for private and foreign commercial banks

♦ Over 28.23 lakh small, marginal farmers received Tk24,845cr from different banks

TDS Desk:

Bangladesh Bank has announced a new Agricultural and Rural Credit Policy increasing the agricultural credit disbursement target to Tk38,000 crore for the current fiscal year 2024-25.

The target is 8.57% higher than the immediate past fiscal year’s Tk35,000 crore.

Bangladesh Bank Governor Dr Ahsan H Mansur spoke about the important issues of the policy at a press conference on Thursday. According to the policy, a disbursement target of Tk12,615 crore has been set for the state-owned commercial and specialised banks and Tk25,385 crore for private and foreign commercial banks.

In the FY 2023-24, all the scheduled commercial banks disbursed  Tk37,154 crore, which was around 106.15% of the target. In that year, agricultural and rural credits were disbursed among over 37.41 lakh people, in which more than 19.21 lakh women borrowers received Tk13,957 crore.

Beside this, over 28.23 lakh small and marginal farmers received around Tk24,845 crore from different banks. Moreover, a total of Tk25.78 crore was disbursed among 4,375 farmers of char, haor and other less developed areas of Bangladesh. Bangladesh Bank’s deputy governors, executive director concerned, officials of Agricultural Credit Department and managing directors or CEOs of scheduled banks were also present at the presser.

Bangladesh Bank has set the new target considering the importance of adequate credit flow to the agricultural sector to achieve gross domestic product (GDP) growth and to control inflation. Every year, agricultural and rural credit policies are formulated by including new issues related to agriculture.

The new policy has included new crops like sajna/sajina, murta and perilla cultivation, production and processing of dry and pearl farming fish in the fisheries sector. Islamic Shariah-based investment methods for investment in the agricultural production sector in Islamic banking system have also been incorporated.

The central bank instructed not to take any charge documents other than DP (demand promissory) note (Tk10 to Tk50 stamp or as per government instructions), letter of personal guarantee (no stamp required), letter of hypothecation (no stamp required) for up to Tk1 lakh in livestock sector loans and up to Tk50,000 in rural loans.

The policy has also included “Shitalpati Bunon” as an income generating sector for rural finance, amendment of paragraph on disbursement of credit to crab, kuchia, seabass/coral and other non-traditional fisheries. The new policy provides instruction for disbursement of group-based agricultural loans to the agricultural product transport sector and extends loan disbursement period for maize (Rabi) and onion cultivation.

National Identity (NID) card number of the farmer will be required while submitting the list of farmers participating in contract farming of the Agricultural Credit Department. The policy provides instructions regarding determination and extension of loan scope or sector for the Tk5,000 crore refinancing scheme.

‘REAL FARMERS SHOULD GET LOANS’

Bangladesh Bank Governor Dr Ahsan H Mansur said that Bangladesh Bank will work to prevent the dominance of brokers (dalal) in the distribution of agricultural loans.   He said, “We will conduct a study of the distribution of agricultural loans and see if the real farmers are getting these loans. We want farmers to get agricultural loans without any brokers or middlemen.”

Dr Mansur hoped that imports would decrease, if domestic production increases with the disbursement of agricultural loans.