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Bangladesh Bank (BB) has set a target of disbursing Tk 60,000 crore in agricultural and rural credit in the 2026-27 fiscal year, a 53.85 percent increase from the Tk 39,000 crore target set for the previous fiscal year.
The central bank announced its Agricultural and Rural Credit Policy and Programme for FY2026-27 at a programme held at its headquarters in Dhaka on Monday, aiming to boost agricultural production, employment and rural incomes while ensuring adequate credit flow to the sector.
Of the total target, Tk 20,495 crore has been allocated to state-owned commercial and specialised banks, while Tk 39,505 crore has been set for private and foreign commercial banks.
BB Governor Md Mostaqur Rahman highlighted the key features of the new policy at the programme, which was attended by senior central bank officials and representatives of scheduled banks.
The new policy introduces several measures aimed at making agricultural credit more inclusive and responsive to the needs of farmers and rural communities.
Under the policy, local agricultural extension officers, sub-assistant agricultural officers, fisheries officers and livestock officers may provide information from their records or government-issued farmer cards to help banks identify genuine farmers.
Banks have also been instructed to provide agricultural loans alongside fisheries and livestock loans in crop and crop-related areas, while limits have been set on the number of members in farmer groups eligible for such credit.
For the fisheries and livestock sectors, banks have been instructed to provide loans of up to Tk 5 lakh without collateral.
Banks have also been advised to consider alternative forms of security, including personal, social and group guarantees, particularly to facilitate financing for women and marginal farmers.
The mandatory requirement for agricultural borrowers to maintain passbooks or similar records has been relaxed, while the process for obtaining Bangladesh Bank’s prior approval for lending under contract farming arrangements has been simplified.
The policy also revises operational guidelines for the Bangladesh Bank Agricultural Development Common Fund (BBADCF), allowing greater flexibility in agricultural financing.
Banks will be able to provide loans to farmers and entrepreneurs engaged in fish farming and livestock activities, either individually or through groups, subject to applicable conditions.
Measures have also been introduced to support honey production, mushroom cultivation, salt-tolerant crops and other emerging agricultural activities.
The policy includes provisions for refinancing schemes involving Tk 10,000 crore and Tk 3,000 crore, with the relevant provisions incorporated into the policy summary.
In response to climate change, Bangladesh Bank has included provisions for agricultural insurance facilities based on the relationship between banks and farmers or customers and the terms of lending.
The policy also provides financing for organic fertiliser produced from materials such as neem leaves, ash, mixed grains, rice bran, jute sticks, tree leaves, banana peels and eggshells.
For crops including chilli, vegetables, banana, papaya, mango, lemon, guava and lychee, loan disbursement, crop-cutting and repayment periods will be determined based on harvesting cycles.
At the programme, Bangladesh Bank also formally launched its Web-Based Agri-Credit MIS Software to strengthen monitoring of agricultural and rural credit programmes and improve policy implementation.
The central bank said the new policy was formulated in line with the government’s objective of ensuring sustainable rural development, creating employment and increasing the incomes of marginal and poor people.
It expects timely and adequate credit flow to the agricultural and rural sectors to boost domestic agricultural production and supply, contain inflationary pressure and contribute to sustainable economic development.
