Five-month farm credit flow up 20pc

Farm credit disbursement grew by more than 20 per cent during the first five months of the current fiscal year (FY), 2013-14, despite the ongoing political unrest.
The banks, particularly the state-owned commercial banks (SoCBs), however, faced difficulties in disbursement and recovery of agriculture loans in some trouble-hit districts in the recent months.
"Recently we're facing trouble in disbursement and recovery of farm loans in some remote areas across the country due to the ongoing political turmoil, centring the January 5 parliamentary election," a senior official of a leading SoCB told the FE Wednesday.
He also said the disbursement of agriculture loans would increase in the coming months due to seasonal impact.
Together the scheduled banks disbursed Tk 55.01 billion in the July-November period of FY 14, compared to Tk 45.62 billion in the corresponding period of the previous fiscal, according to the Bangladesh Bank (BB).
Of Tk 55.01 billion, six SoCBs disbursed Tk 35.05 billion, and the remaining Tk 19.95 billion was disbursed by the private commercial banks (PCBs) and foreign commercial banks (FCBs), the central bank data showed.
The banks have achieved more than 37 per cent of their annual agricultural loan disbursement target for FY 14, fixed at Tk 145.95 billion.x "We've taken different initiatives to achieve the farm loan disbursement target by the end of FY 14," a BB senior official told the FE.
As part of the initiatives, the central bank has already met 10 PCBs separately to review their overall farm loan disbursement situation, and asked them to take necessary measures to achieve their respective targets.
"We've already strengthened our monitoring and supervision to ensure proper utilisation of farm loans," the central banker noted.
He also said the BB wants that credit facility for each interested farmer across the country is ensured without any harassment.
Meanwhile, the amount of classified loans in the agriculture sector reached Tk 62.08 billion in the July-November period of FY 14, from Tk 51.09 billion in the same period of the previous fiscal, mainly due to the ongoing political turmoil.
The amount of default loans in the agriculture sector may increase further  in the coming months, if the political turbulence continues, opined the SoCB officials.
The recovery of farm loans rose to Tk 60.95 billion in the first five months of FY 14, from Tk 51.27 billion in the corresponding period of the previous fiscal.