BB asks banks to lend for raising calves

Bangladesh Bank (BB) Wednesday asked banks to provide loans from its dairy farmers' refinancing scheme for buying and raising calves, reports BSS.
The central bank in a circular asked the banks to give up to Tk 200,000 to a dairy farmer for buying and raising calves.
The directive was given to all state-owned commercial and specialised banks, IFIC Bank, BRAC Bank, Midland Bank, IDLC Finance Limited, Ansar-VDP Development Bank and Karmasangsthan Bank.
BB said the loan amount will be Tk 40,000 for buying a calf and another Tk 10,000 for raising it while a farmer would be allowed to get loan for raising four calves.
The rate of interest on the loan will be 5.0 per cent and should be repaid in 54 months with a grace period of 14 months.
BB also advised the banks that women entrepreneurs and marginal farmers should be given priority in sanctioning and disbursing loans while buying and raising indigenous calves should be encouraged.
The central bank said the field staff of the livestock department would monitor the use of the loan and would report directly to the respective banks for taking necessary measures in case of irregularities.
Bangladesh is now experiencing huge cattle scarcity due to decline in supply from India.
Earlier FE report said decline in supply of Indian cows has impacted the local cattle and meat markets. In all the retail and wholesale markets, the price of cows has gone up by 30 per cent to 40 per cent.
Over the past five months, there has been a 30 per cent drop in cattle heads crossing the border from India to Bangladesh as the BJP-led government in India is on a move to ban cow slaughter across India and go for strict action on illegal cow trading along Indo-Bangladesh borders.
Secretary General of Bangladesh Meat Traders Association Rabiul Alam said beef is being sold in some markets of the city at Tk 400 per kg.
He said, the beef demand was met by the local market over the past three months, but now the supply is dwindling.