Tk 138b farm credit policy announced

FE Team | Published: July 29, 2011 00:00:00 | Updated: February 01, 2018 00:00:00

FE Report The central bank Thursday announced an agriculture credit policy with a disbursement target of Tk 138.00 billion for this fiscal, projecting 9.38 per cent growth over that of the previous fiscal. "The banks will have to ensure proper use of the farm credit through strengthening their monitoring across the country," Bangladesh Bank (BB) Governor Atiur Rahman told reporters while announcing the new policy at the central bank in the city. He also said the banks must disburse the agriculture loans within the shortest possible time without any hassle to farmers. "There is a direct link between the monetary policy and agriculture credit policy and programme," the central bank chief said, adding that the new monetary policy will encourage credit flow to the productive sectors including agriculture. Of the total amount of Tk 138 billion, Tk 85.10 billion will be disbursed by six state-owned banks during the fiscal year 201-12 (FY12). Besides, 30 private commercial banks will provide Tk 47.43 billion while nine foreign commercial banks will disburse Tk 5.47 billion to the farmers, according to the new farm credit policy. The loans will be given to more than 40 different agro and rural fields include crop, fisheries, livestock, agricultural and irrigation equipments, solar irrigation system, high yielding variety of crops, tissue culture, jute cultivation, nursery, marginal and small farmers, sharecroppers, salt and betel leaf cultivation, apiculture, mushroom cultivation, handlooms, silk industry, cotton cultivation, rural finance, credit to women engaged in income generating agriculture and allied agricultural activities. The banks have achieved 97.00 per cent of their Tk 112.17 billion annual farm credit disbursement target in the just-concluded fiscal (FY-11), according to the central bank statistics. "We've been able to achieve the target through strengthening monitoring and supervision on farm credit disbursement across the country," Deputy Governor of the BB Murshid Kuli Khan said adding that the recovery of agri-credit has been increased during the period under review as a result of intensified monitoring. He also said the central bank has expanded its agriculture credit programme bringing more new areas or sectors including solar energy and bio-gas under the discipline of disbursement of agriculture loans. Association of Bankers, Bangladesh (ABB) Chairman K Mahmood Sattar said the country's private commercial banks (PCBs) are now moving forward to invest in agriculture sector particularly high value products including bio-gas. On behalf of the foreign commercial banks, Chief Executive Officer of the Standard Chartered Bank in Bangladesh Jim McCabe said all the foreign commercial banks are committed to invest their funds in the agriculture sector. Among others, Managing Director of the Bangladesh Krishi Bank (BKB) Mukter Hussain and Managing Director of the Rajshahi Krishi Unnayan Bank (RAKUB) Pradip Kumar Dutta also spoke on the occasion.