Bangladesh Rural Development Board (BRDB) and banks disbursed loans of Tk 9.98 billion in July, the first month of the current fiscal year, as farm and non-farm credit.
However, the average monthly credit disbursement target was set at Tk 23.65 billion in the agriculture credit policy.
They said the farm and non-farm loan disbursement got priority as the performance of agro-sector loan disbursement was included in CAMES Rating performance criteria.
According to the latest central bank report on farm and non-farm rural credit, the banks have disbursed Tk 9.41 billion in the month of July while the BRDB released Tk566 million loans.
It shows that Tk13.67 billion is yet to be disbursed and the figure is higher than the disbursed loan amount.
A month earlier in June, the banks had disbursed Tk 35.40 billion in June to the farm and non-farm rural credit sector and recovered Tk 36.86 billion.
The banks also recovered the loan installment of Tk 16.87 billion in July, while the total outstanding loan amount stood Tk 451.95 billion, the BB report stated. The central bank focused on increasing disbursement of farm credit to revitalise the rural economy and ensure fair prices for farmers.
Dr. Mohammad Jahangir Alam, professor of Agribusiness and Marketing of Bangladesh Agriculture University, told daily sun, “If the market price of agro products is fair, the farmers will get encouraged to cultivate more land.”
He said, “The farmers’ observation capacity has increased in the recent years. They want to cultivate a new and diversified agro- product which has a demand both in local and global consumer market.”
“Ensuring disbursement of agro credit in time with hassle-free atmosphere is essential to ensure growth of farm production including that of rice,” Dr. Alam said.
BB spokesperson Md. Serajul Islam said the central bank took measures to enhance monitoring and supervision to achieve farm credit disbursement target in line with annual loan disbursement plan.
Bangladesh Bank has fixed the agro credit target at Tk 283.91 billion for the FY2021-22.
The target is 7.98 percent higher than the previous year’s target of Tk 262.92 billion.
The loan disbursement target for the state-owned and specialized commercial banks is now fixed at Tk 110.45 billion and for the private and foreign commercial banks Tk173.46 billion.
The targets have been set considering the pandemic situation and the increased demand of agricultural and rural credit in the country.