The Bangladesh Bank has announced a new agricultural credit policy with a target of disbursing a Tk30,911 crore loan in the fiscal year (FY) 2022-23.

The target is 8.88 percent higher than the previous year's Tk28,391 crore.

Considering increased demand, the central bank set a target of disbursing Tk11,758 crore in agricultural and rural loans by the state-owned commercial and specialised banks and Tk19,153 crore by the private and foreign commercial banks.

The Bangladesh Bank's Agricultural Credit Department Thursday announced the "Annual Agricultural and Rural Credit Policy and Programme" for FY23 with targeted credit disbursement.

According to the central bank's agricultural credit policy, agriculture has become more important amid the pandemic and the recent global situation. So, the Bangladesh Bank wants to support this sector through necessary financing.

The policy aims at increasing the flow of agricultural credit in rural areas for alleviating poverty, alleviating hunger and ensuring good health – the first three sustainable development goals (SDGs).

In FY22, all the scheduled commercial banks disbursed Tk28,834.21 crore in agricultural and rural loans against the target of Tk 28,391crore.

According to the central bank, 33.4 lakh people received agricultural and rural loans in the last fiscal year. Among them, 18 lakh were women who received Tk10,829.39 crore.

Also, around 25 lakh small and marginal farmers received around Tk20,182.30 crore loans from different banks. 

Moreover, Tk19.59 crore was disbursed among 4,073 farmers in char, haor and less developed areas.

Also read: 91.46 pc agro credit disbursed till May: BB