Bangladesh launches smart card system for farmers

A new smart card scheme has been launched in Bangladesh in an effort to increase productivity and reduce fraud.

Nearly 20 million small or medium-sized farms in Bangladesh will receive the card, which will allow them to open bank accounts with just a few cents. This will allow the government to pay subsidies directly to them, cutting out middlemen and embezzlers who siphon off a large portion of government aid.

The card will first be used to distribute a US$100 million fuel subsidy. The cards will also contain information on the land the farmers have under cultivation, the crops they produce and the fertilisers they will need.

This will help the government make detailed analysis of the inputs that farmers need, which will then allow the government to make efficient planning for agriculture and farmers who have never been linked to the banks will become more money-literate, said Agriculture Secretary Mustaq Ahmed.

Farmers will then begin to take loans from banks instead of rural moneylenders who charge high interest rates for farmers. It will also make farmers more aware of modern agriculture technologies, said Mustaq Ahmed.

He said it is hoped that the initiatives will bring revolutionary changes to the agricultural sector.