BB Sets Tk39,000 Cr Agricultural Loan Disbursement Target for FY26
Bangladesh Bank (BB) has set an agricultural and rural loan disbursement target of Taka 39,000 crore for the fiscal year 2025-26 (FY26), which is 2.63 percent higher than the last fiscal year's Taka 38,000 crore. "The target has been set considering the importance of adequate credit flow to the agricultural sector to achieve GDP growth and to control inflation. 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," said BB Governor Dr. Ahsan H. Mansur. The governor made these remarks today while announcing the new agricultural and rural credit policy and programme at a press conference held at the Jahangir Alam Conference Hall of Bangladesh Bank's headquarters in the city
Deputy Governors, the head of the BFIU, the Chief Economist, Executive Directors, and top executives of scheduled banks were present on the occasion. Web-based Agri-Credit MIS Software was also launched at the same event to improve monitoring and policy formulation for the agricultural and rural loan programme. Mansur said a target of Taka 13,880 crore has been set for state-owned commercial and specialized banks, and Taka 25,120 crore for private and foreign commercial banks for disbursement of agricultural and rural credit. "A discussion has been included regarding the relationship of the annual agricultural and rural credit policy and programme with SDG Goals 1, 2, 8, 10, 12, 13, and 15; Articles 14 and 16 of the Bangladesh Constitution; the Bangladesh Bank Order, 1972; and the Bank Company Act, 1991," he added.
He said BB has incorporated mandatory CIB reporting for any amount of agricultural credit or investment through its own network and has waived the service charge related to CIB reporting for agricultural and rural credit up to Taka 2.50 lakh. The central bank has also increased the disbursement target for banks in the livestock sector from 15 percent to 20 percent and introduced a 2 percent disbursement target for the irrigation and agricultural equipment sector. To expand the scope of agricultural and rural credit, the BB governor said new crops like jackfruit, beetroot, cucumber, taro, black seed, and the cultivation of ginger, garlic, and turmeric in bags, as well as the production of molasses, have been included. According to location and actual demand, banks can sanction credit up to 20 percent more or less than the predetermined amount fixed for agricultural credit in the credit norms, he added.
He mentioned that banks have been instructed to arrange awareness programmes regarding agricultural credit disbursement and recovery for farmers. Also, farmers who pay their loan installments regularly should be rewarded, he added. Mansur said, "In order to alleviate poverty, create employment, increase the income of marginalized and poor people, and establish a sustainable economy, the timely supply of sufficient funds to the agriculture and rural sectors is essential."
He expressed hope that the aforementioned policies and programmes will play an effective role in macroeconomic management and sustainable development by controlling inflation and increasing employment and income of rural people through the enhanced production and supply of the nation's agricultural products.
