Own Correspondent: Agricultural credit disbursement was very low due to various reasons including contractionary monetary policy. Finally now it is starting to grow. Within a month, disbursement of agricultural loans increased by more than 500 crore rupees. At the same time, the collection increased by more than 850 crores.

This information has emerged in the latest updated report of Bangladesh Bank.

According to the data of Bangladesh Bank, in the month of September of this year, the banks have distributed loans to the agricultural sector of Tk 2 thousand 587 crores. In the previous month of August, the banks had disbursed Tk 2,800 crore. As a result, the disbursement of agricultural loans has increased by Tk 507 crore within a month.

However, compared to the same period of last year, the disbursement of agricultural loans has decreased significantly. In September 2023, the disbursement of loans to this sector was Tk 3,516 crore. As a result, loan disbursement has decreased by Tk 929 crore in one year.

According to the data, in the first three months of the current fiscal year (July, August, September), banks have disbursed agricultural loans of Tk 6,458 crore. 8 thousand 824 crore was distributed during the same period of the last financial year. Accordingly, the distribution has decreased by 2 thousand 366 crores.

Along with disbursement of agricultural loans, collection has also increased. According to the data of the Central Bank, in September this year, the banks have collected the disbursed loans from farmers to the tune of Tk 3,764 crore. The collection in the previous month was 2 thousand 911 crores. Accordingly, the collection has increased by 853 crores. However, within one year, the collection has increased by 1 thousand crore rupees. In September last year, banks collected disbursed loans from farmers to the tune of Tk 2,763 crore. Also, in the first three months of the current financial year (July, August, September), the banks collected 9 thousand 209 crores. During the same period of the last financial year, the collection was 8 thousand 14 crores. Accordingly, the collection has increased by 1 thousand 195 crores.

Bangladesh Bank announced the agricultural loan target on August 30. In the current financial year 2024-25, the central bank has set a target of Tk 38 thousand crores of loan disbursement in the agricultural sector. Which is about 8.5 percent more than the target of the last financial year 2023-24. In the last financial year, the target was 35 thousand crores. A target of Tk 12,615 crore for state-owned commercial and specialized banks, Tk 25,385 crore for private and foreign commercial banks has been set. Banks can use their own networks (branches, sub-branches, agent banking, contract farming, syndicated loan distribution) and bank-MFI linkages to achieve the target. But at least 50 percent must be distributed through own network. Of the total target, 60 percent of the loans should be disbursed to the crops and crops sector, 13 percent to the fisheries sector and 15 percent to the livestock sector.

According to the data of the Central Bank, at the end of September this year, the total disbursed credit in the agricultural sector stood at Tk 54 thousand 927 crore. Last August, the balance was 55 thousand 822 crores. That is, the disbursed credit status in this sector has decreased by 895 crores within a month. However, disbursed loans increased by Tk 763 crore in one year. In September last year, the disbursed credit status in this sector was Tk 54 thousand 116 crore.

According to the central bank's agricultural policy, there is an order to provide agricultural loans at the same rate throughout the year based on the crop season. Even then, the banks are lagging behind in disbursing loans. According to Bangladesh Bank guidelines, banks are required to disburse a minimum of 2 percent agricultural loans out of total loans. If a bank fails to meet the target, that bank has to pay a penalty.

On the other hand, the dependence of private banks on Micro Finance Institutions (MFIs) is being further reduced to reach the farmers at low interest rates. For this, Bangladesh Bank has made it mandatory to disburse at least 50 percent agricultural credit through the bank's own network, which was 30 percent until now. Apart from this, the share of agricultural loan to be given to which sector has also been determined.

According to the latest agricultural loan policy, doing various agricultural activities on the roof of the building is a new concept. Which is currently increasing in urban areas. Basically the garden which is developed on the roof of the house with flowers, fruits and vegetables in a scientific manner is known as roof garden.

900 families are self-sufficient in Rajshahi's family nutrition garden