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Bangladesh Bank (BB) has raised the agriculture and rural loan disbursement target by 10.66 per cent to Tk 24,124 crore for the current 2019-20 financial year (FY20).

Deputy Governor of the central bank SM Moniruzzaman announced the target yesterday while rolling out the agriculture and rural credit policy for the FY20 at a meeting at the central bank’s headquarters in the capital.

The disbursement target for the immediate past 2018-19 financial year (FY19) was Tk 21,800 crore.

According to the new policy, state owned commercial and specialized banks will disburse Tk 10,375 crore while private and foreign commercial banks Tk 13,749 crore.

The target will not be difficult to achieve for the banks, as they disbursed Tk 23,616.25 crore last fiscal exceeding their annual disbursement target (by 8.33 per cent), said the deputy governor.

Moniruzzaman said BB has published the annual Agricultural and Rural Credit Policy and Programme for FY20 for achieving the prime objectives of sustainable development goals (SDGs), including eradication of poverty, ensure safe and nutritious food and maintain good health for the people of the country.

To ensure the food security of the people and to develop a sustainable agricultural credit system, some new concepts have been added to the current agricultural credit policy. These are: reducing the use of Micro-finance Institution (MFI) linkage and disbursing credit through own branches and agent banking of banks, agricultural credit for cashew, rambutan cultivation and potato cultivation on double bed process of water hyacinth.

CIB report must for all outstanding crop loans, but CIB report is not essential for new allocation or renewal loans up to Tk 2.50 lakh.

The other concepts are normal timeline (institution for seed production and sale) for credit repayment, increasing credit ceiling logically for every acre land of crop credit disbursement, credit policy for rearing cow, goat and sheep and cattle fattening.

Credit policy for commercially silk production and implementing the piloting activities of agriculture and rural credit simplification adopted by access to information (a2i).

In the previous fiscal FY19, agricultural and rural credit was disbursed among 38,83,424 person in total of which number of women borrower is 16,01,856 who have received Tk 7,190.55 crore as credit.

In the previous year 29,89,237 small and marginal farmers have received around Tk 16,322.87 crore from different banks. Beside this Tk 31.61 crore was disbursed among 9,950 farmers of char, haor and less developed area of the country.

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