BB sets Tk390b agricultural loan disbursement target for FY26

Bangladesh Bank (BB) has set an agricultural and rural loan disbursement target of Tk 390 billion (Tk 39,000 crore) for the fiscal year 2025-26 (FY26), which is 2.63 per cent higher than the last fiscal year's Tk 380 billion (Tk 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 on Tuesday 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, reports BSS.

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 specialised banks, and Taka 25,120 crore for private and foreign commercial banks for the 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 per cent to 20 per cent and introduced a 2 per cent 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 per cent 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 instalments regularly should be rewarded, he added.

Mansur said, "In order to alleviate poverty, create employment, increase the income of marginalised 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.