Tk 60,000 Crore Target Set for Agricultural Loans, Camel Farming Included

The Bangladesh Bank has set a target of Tk 60,000 crore in agricultural and rural loans for the current fiscal year, an increase of nearly 54% from last year's target of Tk 39,000 crore.

The new agricultural credit programme has also expanded its coverage to include activities such as fish fry production at hatcheries, poultry chick production and camel farming.

Bangladesh Bank Governor Md. Mostaqur Rahman announced the new Agricultural and Rural Credit Policy and Programme at a meeting held at the central bank's headquarters on Monday (August 17).

How the Tk 60,000 Crore Will Be Distributed

Of the total target:

Tk 20,495 crore has been allocated to state-owned commercial and specialised banks. Tk 39,505 crore has been allocated to private and foreign commercial banks.

Bangladesh Bank said the increased flow of credit is intended to boost food production and employment, increase rural incomes and help control inflation.

Greater Focus on Genuine Farmers

The new policy introduces several measures aimed at making agricultural credit more accessible to actual farmers.

For obtaining a farmer card, certification from local agricultural extension officers, sub-assistant agricultural officers, fisheries officers or livestock officers can now be used as supporting documentation.

The policy also relaxes some requirements relating to passbooks and prior approval from Bangladesh Bank before loan disbursement.

For loans of up to Tk 5 lakh in the fisheries and livestock sectors, banks have been instructed to give priority to women and marginal farmers.

To make financing easier for these groups, the central bank has recommended the use of alternative forms of collateral instead of requiring land or other immovable property.

Individual farmers, groups of farmers and farm owners will also be eligible for financing in fisheries and livestock-related activities.

The agricultural credit programme now covers several additional activities, including:

Fish fry production in hatcheries Poultry chick production Camel farming Fisheries and livestock farming

The policy also includes Tk 10,000 crore and Tk 3,000 crore refinancing funds.

The new policy introduces provisions to bring agricultural borrowers under insurance coverage to help address the effects of climate change.

The insurance facility is expected to be arranged through coordination between banks and borrowers.

To ensure agricultural lending continues throughout the year, repayment schedules will also be tailored to the production cycles of certain fruits.

These include banana, papaya, mango, lemon, guava and litchi. Loan repayment periods will take into account the timing of cultivation and harvesting.

Bangladesh Bank believes that expanding agricultural and rural credit will help reduce poverty, create employment, raise incomes among disadvantaged rural communities and strengthen the country's sustainable economic development.