Bangladesh Bank (BB) expects Tk39,000 crore for the FY26 in agricultural and rural sectors loan disbursement target would help Bangladesh’s agricultural productivity, curb inflation, and reduce poverty by generating new employment.
The central bank on Tuesday set this target, which is 2.63% higher than last year. In FY25 the disbursement target was Tk38,000 crore.
According to Bangladesh Bank Governor Ahsan H Mansur, the target has been increased to support farmers and ensure higher agricultural output, with the ultimate aim of ensuring national food security and encouraging investment in the sector.
At a press conference titled "Declaration of Agricultural & Rural Credit Policy and Program for the FY2025-2026," he also remarked that inflation did not ease in July due to the increase in rice prices.
It is not possible to control inflation due to the government's wrong import policy. If the policy is not determined at the beginning of the year, it will not be possible to control inflation in any way, he explained.
He also said that Bangladesh Bank will work to ensure that 100% of agricultural loans goes to farmers instead of brokers.
Regarding updates on bank mergers, the governor said that the merger of weak banks is an ongoing process.
“There is no reason for depositors to worry about this. The government will take all the responsibilities of depositors."
Agricultural and rural credit policies are annually formulated by including new issues related to agriculture.
Notable new additions to this new policy include:
* A discussion is inserted regarding relationship of Annual agricultural and rural credit policy and program with SDG Goals-1,2,8,10,12,13 & 15; Article 14 & 16 of Bangladesh Constitution; Bangladesh Bank Order, 1972 and Bank Company Act, 1991;
* Participation of Prabashi Kallyan Bank in Annual agricultural and rural credit program;
* Incorporation of mandatory CIB reporting for any amount of agricultural credit/investment through own network and remission of service charge related to CIB reporting for agricultural and rural credit amounting up to Tk2.50 lakh;
* Increasing the disbursement target for banks in livestock sector from 15% to 20% and introducing 2% disbursement target for irrigation and agricultural equipment sector,
* Instructing not to take any charge documents other than DP note (Tk10 to Tk50 stamp/as per government instructions), letter of personal guarantee (no stamp required), letter of hypothecation (no stamp required) for up to Tk3 lakh in livestock and fisheries sector,
* Providing instruction for using the region-based production potential and productivity information of specific crops available at the Crop Zoning System or Khamari apps developed by Bangladesh Agricultural Research Council in distributing the agricultural credit through Area Approach System;
* Banks are advised to share some of the interest/profit earned with the relevant agents in order to accelerate the distribution of agricultural and rural credit/investment through the agent banking system;
* To extend the scope of Contract Farming into all the sub sectors of Crop, Livestock and Fisheries sectors referred in Annual Agricultural and Rural Credit Policy & Program;
* In order to increase scope of agricultural and rural credit, new crops like Jackfruit, Beetroot, Cucumber, Taro, Black Seed, cultivation of ginger, garlic and cucumber in bags, production of Molasses are included;
* According to location and actual demand of farmers, banks can sanction credit up to 20% more/less from the predetermined amount fixed for agricultural credit in credit norms;
* Banks are instructed to arrange awareness programs regarding agricultural credit disbursement and recovery for farmers. Farmers who pay their loan installments regularly should be rewarded.
