Bangladesh ups agriculture loan target to seek self-sufficiency

The Bangladesh government plans to increase the agriculture loan disbursement target for the next fiscal year in a bid to achieve self-sufficiency in food through ensuring greater access for farmers to finance.

According to central bank governor Atiur Rahman, the agriculture loan distribution target of the current fiscal year is BDT11,500 crore (US$1,655.8 million) and nearly 78% of the target has so far been achieved till April.

"We've two more months in hand and hope to add another 12-14% in the remaining two months," Atiur noted.

He revealed that the new agriculture loan policy, which will be more farmer-friendly, would be finalised soon, after recommendations from all, adding that it will be formally announced in July.

Terming the agricultural sector as the driving force of the economy, Atiur said there is no alternative to patronising agriculture to boost the country's economic growth.

He ensured that the government would take all necessary steps in the upcoming agriculture loan policy to simplify agro-loan disbursement system, make the entire process harassment-free.

Additionally, some major positive changes would be brought into agriculture loan policy including removal of operational difficulties, simplification of application form, minimising the gap between loan sanction and disbursement, decreasing the processing fee and distributing loans through farmers own account.

Earlier, Atiur said the central bank, for the first time, has taken a refinancing scheme of BDT500 crore for the landless farmers and set a target of BDT100 crore loan distribution till June, 2010.

Against the pre-set target, 44,000 landless farmers got loans worth BDT45 crore till April, he said, asking field-level branch managers to keep their eyes open regarding whether the targeted farmers are getting loans or not in the truest sense.