Photo: Collected
Bangladesh Bank has announced agricultural and rural credit policies and programs for 2024-25. In the current fiscal year, a target of disbursement of farm loans of Tk 38,000 crore has been set through commercial banks. This policy was announced through a press conference at the Jahangir Alam conference room of Bangladesh Bank last Thursday (August 29).
According to the policy, the target of Bangladesh Bank's annual agricultural and rural loan disbursement in the current financial year 2024-25 is Tk 38 thousand crores.
Which is 9 percent more than last financial year. However, 37 thousand 153 crore 90 lakhs were distributed last fiscal year.
Considering the demand, state-owned commercial and specialized banks have set a target of Tk 12,615 crore and private commercial banks Tk 24,121 crore, foreign commercial banks have set a target of Tk 1,264 crore for agricultural and rural loans. Half or 50% of the total loan will be given by the bank itself and the remaining half will be given through NGOs.
According to the latest labor force survey of the country, 3 crore 17 lakh 80 thousand workers are engaged in the agriculture profession. The contribution of the agriculture sector to the country's GDP is 12 percent. The share of agricultural products in total exports is about 3 percent. If frozen fish and jute products are added to this, the share of agriculture in total exports is about 7 percent.
It is informed Bangladesh Bank, Bangladesh Bank has set a target of Tk 38,000 crore agricultural and rural loan distribution for the banks in the current fiscal year 2024-2025, taking into account the urgency of adequate credit flow in the agricultural sector to achieve GDP growth through increasing agricultural production in the country and controlling inflation. This target is about 8.57 percent higher than the target for the fiscal year 2023-2024.
It should be noted that against the target of Tk 35,000 crore set in the last financial year, banks have distributed Tk 37,153.90 crore agricultural and rural loans which is Tk 32,829.89 crore to Tk 4,324.01 crore from the previous fiscal year 2022-2023. 13.17 percent more. 1889 crores in interest under agriculture and rural credit policy. Local private banks have to disburse at least 50% of the target agricultural and rural credit through their network and compulsorily disburse 60% of the target to the crops and crops sector, 13% to the fisheries sector, and 15% to the livestock sector.
A fund named 'Bangladesh Bank Agricultural Development Common Fund (BBADCF)' has been formed to invest the unearned portion of the banks' agricultural and rural credit disbursement targets in the agricultural sector. The unearned portion of banks that fail to achieve the target will be deposited in this fund and they will be paid interest at the rate of 2% against the amount deposited. The money deposited in this common fund will be distributed to the customers under the agricultural and rural credit policy by determining the interest rate of agricultural and rural loans as per the instructions issued by Bangladesh Bank from time to time through the target banks and at the end of the period the banks using the funds will repay the principal with 2% interest to Bangladesh Bank.
The importance of the agriculture sector has increased significantly in the post-Covid-19 pandemic global context. To this end, to encourage farmers to produce locally dependent crops, agricultural loans at subsidized interest rates of 4% are being continued for import substitute crops. Apart from this, 5,000 (five thousand) crores to ensure low-interest (4% interest rate) credit flow to major agricultural sectors to ensure food security of the country and refinancing of 1,000 (one thousand) crores to increase wheat and maize production. The scheme is ongoing. A refinancing scheme of Tk 500 (Five Hundred) Crores is also underway under the 'Ghere Fera' program for poverty alleviation and employment generation during COVID-19. Loan disbursement activities will continue under these refinancing schemes.
Agricultural and rural credit policies and programs for the financial year 2024-2025 will help to reach the marginal people with low-interest credit flow. Apart from increasing agricultural productivity, this policy will also play a leading role in creating self-employment and poverty alleviation through rural financing in rural areas.
Source: Online/GFMM/KSU
Comment Now