A file photo shows a farmer threshing paddy on the outskirts of Dhaka. — New Age Photo

Disbursement of agricultural loans by banks amounted to Taka 3,837 crore in the first two months (July-August) of the current financial year 2022-23, i.e. 12.41% of the disbursement target total annual.

Disbursement of agricultural credit increased by 43.46% or Tk 1,162.52 crore to Tk 3,837.3 crore in July-August FY23 from Tk 2,674.78 crore in the same period of the previous fiscal year, according to the Bangladesh Bank.

The agricultural credit disbursement target was set at Tk 30,911 crore for FY23, which is 8.88% higher than the Tk 28,391 crore target for FY22.

Central bank pressure on banks to speed up the disbursement of loans to farmers was a major reason for the increase, BB officials said.

The total agricultural credit recovery position was Tk 4,123.13 crore in July-August 2022, which is 22.36% higher than the Tk 3,369.42 crore recovered during the same period of the previous year.

The outstanding balance, including interest, of agricultural credit stood at 50,235.4 crore taka at the end of August, 11% higher than 45,260.89 crore at the end of August. August 2021.

The disbursement target of all public commercial banks and public specialized banks has been set at Tk 11,758 crore and that of private commercial banks and foreign commercial banks has been set at Tk 19,153 crore.

While agriculture plays a vital role in the country’s economy, providing credit to farmers has become crucial to keep the agriculture-based rural economy vibrant at a time when the industry and Services are struggling due to the current global economic crisis, officials said. .

No less than 40.6% of the country’s workforce is directly employed in the agricultural sector.

As inflation has increased significantly and the cost of imports has risen in recent months, the government is placing more emphasis on agricultural production, which is one of the driving forces of Bangladesh’s economy.

On May 22, 2022, the central bank emphasized the disbursement of agricultural credit at a concessional interest rate of 4% for the cultivation of import substitution crops (pulses, oilseeds, spices and corn)

In addition, on June 27, 2022, the BB announced the disbursement of at least 40% of the unused outstanding amount of Tk 3,000 crore as a previously issued refinancing program through a circular dated September 14, 2021 to the farmers affected by the floods.