July 28, 2022 6:25:48 p.m.
Bangladesh Bank (BB) has raised the agricultural and rural loan disbursement target by 8.88% to 0.30 trillion taka for the current financial year 2022-23 (FY23).
The disbursement target for the financial year 2021-22 (FY22) was Tk 0.28 trillion, BSS reports citing a press release.
In view of the increased demand for agricultural and rural credit, the disbursement target for public and specialized commercial banks has been set at 117.58 million taka, while private and foreign commercial banks have been set at 191.53 million. million taka.
In the previous financial year (2021-22), all scheduled commercial banks disbursed agricultural and rural credits of 288.34 million taka against the target of 283.91 million taka or about 101.56% of the set objective.
Agricultural and rural credits were disbursed to a total of 33,04,811 people, of which 17,97,052 women borrowers received 108.29 million taka.
In addition, 24,99,945 small marginal farmers received about 201.82 million taka from different banks.
In addition, 195.90 million taka has been disbursed among 4,073 farmers in char, haor and less developed regions of the country.
Agriculture is one of the driving forces of Bangladesh’s economy. The importance of agriculture is increasingly felt following the Covid pandemic and the recent global situation. Therefore, Bangladesh Bank always tries to help the agricultural sector with the necessary financing.
Furthermore, to achieve the government’s three main Sustainable Development Goals (SDGs) – eradicating poverty, ensuring safe and nutritious food, and ensuring good health and well-being – Bangladesh Bank today released the Annual Agriculture and Rural Credit Policy and Program. for the 2022-2023 financial year for the mobilization of numerous credits in rural areas.
In order to ensure the food security of the population and to develop a sustainable agricultural credit system, there are some new inclusions in the current agricultural credit policy.
These are the inclusion of credit standards for duck farming in the poultry sub-sector; inclusion of credit standards for cultivation of Chia Seed, Teen Fruit, Sugarbit; the inclusion of credit standards for the cultivation of Vietnamese hybrid coconut, coffee and sweet corn; inclusion of credit standards for seaweed cultivation; inclusion of credit standards for lobster farming in the fisheries sub-sector; inclusion of group loan disbursement to easily provide agricultural credit to one group of farmers at a time and increased credit limit per acre for growing crops.
The Agricultural and Rural Credit Policy and Program for FY 2022-2023 issued by Bangladesh Bank will be useful to banks for financing the agricultural sector.
The Bangladesh Bank also hopes that it will make a significant contribution to agriculture and rural development.