Banks disbursed Tk 5,210 crore in agricultural loans in the first three months (July, August and September) of the current 2021-22 fiscal year, 11.23 per cent more than in the same period of the previous year, or Tk 526 crore more in money terms. In the first three months of the last fiscal year (2020-21), banks disbursed Tk 4,684 crore in the agriculture and rural credit sector.

The figures come from a Bangladesh Bank report.

The data show that banks fell somewhat behind in disbursing farm loans in July and August, the first two months of the fiscal year, when disbursement shrank by 21 per cent. A positive change came in September, the third month, when Tk 2,536 crore was disbursed.

Banks disbursed Tk 942 crore in farm loans in July and Tk 1,732 crore in August. In all, they disbursed Tk 5,210 crore 50 lakh over the three months, 18.35 per cent of the annual target.

The target for agricultural lending in 2021-22 is Tk 28,391 crore. Because of the coronavirus pandemic, farm loan targets are not being met. In 2020-21 the target was Tk 26,292 crore, and banks managed to disburse 97 per cent of it, or Tk 25,511 crore. Banks also failed to meet the farm loan target in 2019-20.

Farm loan recovery in July-September of 2021-22 was Tk 5,586 crore, against Tk 6,277 crore in July-September of 2020-21.

Separately, Bangladesh Bank announced a Tk 5,000 crore stimulus package for the agriculture sector last April. Under the package, Tk 4,295 crore had been lent to the poultry, dairy and livestock, horticulture, flower, fruit and fisheries sectors by 30 June.

With the coronavirus situation not improving, the central bank set up a further Tk 3,000 crore refinancing fund last September. Small and marginal sharecroppers can borrow up to Tk 2 lakh from it without collateral. The fund will run until 30 June 2022.

Source: Jagonews24. First published in Bengali on The Agro News.