Agriculture credit disbursement has increased by 9.6 percent in the first eight months of this fiscal year compared to same period a year ago.
But the non-farm rural credit disbursement dropped by 2.16 percent during the same period from the previous year, according to Bangladesh Bank report.The central bank has focused on accelerating farm and non-farm rural credit disbursement to boost food production for ensuring food security of the country in this pandemic period.
As part of this the BB has increased allocation by 8.99 percent to Tk 262.92 billion in the fiscal year 2020-21 which was Tk 241.24 billion in last fiscal.
The six state-owned banks, two specialized banks, 38 private commercial banks and nine foreign banks disbursed Tk 227.49 billion in the last fiscal year. According to the monthly financial report of BB, the banks disbursed a total of Tk 161.8 billion to both the sectors during the July-February period this fiscal.
The recovery of agriculture credit and non-farm rural credit increased by 15.73 percent and 1.91 percent respectively during the first eight months of current fiscal year compared to similar period a year earlier.
The banks disbursed as agriculture credit Tk 12.930 billion in July, Tk 15.124 billion in August, Tk 10.42 billion in September, Tk 16.25 billion in October, Tk 18.28 billion in November, Tk 26.242 billion in December, Tk 16.46 billion in January and Tk 16.10 billion in February this fiscal.
Of the non-farm sector the banks disbursed rural credit of Tk2.16 billion in July, Tk 4.35 billion in August, Tk 1.86 billion in September, Tk 3.20 billion in October, Tk 4.78 billion in November, Tk5.18 billion in December, Tk 4.21 billion in January, and Tk4.21 billion in February this fiscal.The agriculture loan recovery also increased by 15.73 percent in the first eight months while it was 6.64 percent a year ago.
The farm loan recovery increased gradually as the farmers got returns of good harvest despite the pandemic.
The banks recovered loans of Tk 19.89 billion in July, Tk 13.14 billion in August, Tk 17.82 billion in September, Tk 18.71 billion in October, Tk 19.05 billion in November, Tk 26.73 billion in December, Tk 19.1 billion in January and Tk 10.64 billion in February of FY21.
The banks also recovered loans from non-farm rural credit sector of Tk 2.89 billion in July, Tk 3.96 billion in August, Tk 4.83 billion in September, Tk 3.08 billion in October, Tk 3.65 billion in November, Tk 6.91billion in December, Tk 4.55 billion in January and Tk 3.71 billion in February.
The position of overdue agricultural credit and non-farm rural credit, as percent of total credit stood at 14.34 percent in February from 14.44 percent a year ago.
The amounts of outstanding credit at both the sectors stood Tk 450.53 billion in February compared to Tk 433.15 billion last year. Agricultural credit includes credit to crops, irrigation equipment, agri-equipment, lives-stock and poultry firm, fisheries, grain storage and marketing. BB spokesperson Md. Serajul Islam said about most of the people of the country directly or indirectly are dependent on agriculture. “The central bank always has special focus on credit disbursement in this sector.” Despite the pandemic, the famers worked incessantly ensuring food supplies to the country. He said the farmers received fair prices for their products including paddy this fiscal year. He said they were new loans after repayment of the old ones.