Bangladesh Bank has raised the agricultural credit disbursement target by nearly 54 percent for the current fiscal year 2026-27, setting it at Tk 60,000 crore.
Under the updated guidelines, all commercial banks are now mandated to disburse at least 4 percent of their total loan portfolio to the agriculture sector, up from the previous minimum requirement of 2.5 percent.
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In the previous fiscal year, the agricultural disbursement target stood at Tk 39,000 crore.
BB Deputy Governor Dr Md Habibur Rahman announced the new Agricultural and Rural Credit Policy during a press conference held at the central bank headquarters on Monday.
Out of the total Tk 60,000 crore target for FY27, Tk 20,495 crore has been allocated to state-owned commercial and specialised banks, while private and foreign banks have been tasked with disbursing the remaining Tk 39,505 crore.
According to the central bank, the primary objective of the policy is to boost agricultural production and contain inflation by ensuring adequate credit flow to the sector. To strengthen supervision and monitoring of the programme, a specialised "web-based agricultural credit MIS software" has been developed.
The Bangladesh Bank introduced several new measures in this year's policy framework.
For loans up to Tk 5 lakh in the fisheries and livestock sectors, traditional immovable property collateral is no longer required. Instead, banks can accept personal, social, or group guarantees, making credit accessible to women and marginal farmers.
Group-based financing has been expanded for crops, fisheries, and rural income-generating activities, with relaxed limits on group membership size.
Credit coverage has been extended to new sub-sectors, including fish and poultry chick production in hatcheries, camel farming, blueberry cultivation, shimul root (cotton tree root), ashwagandha, and organic fertiliser production using eggshells.
Genuine farmers can be identified through certificates provided by local agriculture, fisheries, or livestock officers, or via Farmers’ Card. The mandatory requirement for possessing a passbook to obtain a loan has been abolished.
A new provision allows banks and farmers to mutually agree on introducing insurance coverage to mitigate climate change risks.
The central bank expressed optimism that the timely policy measures will play a crucial role in reducing poverty, generating new employment opportunities, and maintaining overall macroeconomic stability in Bangladesh.