Dhaka: Bangladesh Bank (BB) has announced an ambitious target for the fiscal year 2026-27, aiming to disburse Tk 60,000 crore in agricultural and rural credit, marking a significant 53.85 percent increase from the previous fiscal year's target of Tk 39,000 crore. The announcement was made during the unveiling of the Agricultural and Rural Credit Policy and Programme for FY2026-27 at the central bank's headquarters.
According to Bangladesh Sangbad Sangstha, the central bank's new policy aims to boost agricultural production, employment, and rural incomes while ensuring an adequate flow of credit to the sector. Out of the total credit target, Tk 20,495 crore has been allocated to state-owned commercial and specialized banks, with the remaining Tk 39,505 crore earmarked for private and foreign commercial banks.
The policy was presented by BB Governor Md Mostaqur Rahman in the presence of senior central bank officials and representatives from scheduled banks. It includes several measures to make agricultural credit more accessible and responsive to the needs of farmers and rural communities, such as allowing local agricultural officers to assist in identifying genuine farmers and directing banks to provide loans for fisheries and livestock sectors without collateral for amounts up to Tk 5 lakh.
Banks have been encouraged to explore alternative security forms, including personal, social, and group guarantees, to facilitate financing for women and marginal farmers. Additionally, the policy relaxes the mandatory requirement for maintaining passbooks for agricultural borrowers and simplifies the process for banks to obtain prior approval from Bangladesh Bank for contract farming loans.
The policy also revises operational guidelines for the Bangladesh Bank Agricultural Development Common Fund (BBADCF) and incorporates measures to support emerging agricultural activities such as honey production and mushroom cultivation. Provisions for re-financing schemes totaling Tk 13,000 crore and climate change-responsive insurance facilities for agricultural borrowers have also been included.
Moreover, the new policy supports financing for organic fertiliser production and sets guidelines for loan disbursement and repayment periods based on crop harvesting times. The launch of a Web Based Agri-Credit MIS Software aims to enhance monitoring of agricultural and rural credit programmes and improve policy implementation.
Bangladesh Bank stated that the policy aligns with the government's goals of sustainable rural development, job creation, and income growth for marginal and poor populations. The central bank anticipates that the timely and sufficient credit flow to the agricultural and rural sectors will boost domestic agricultural production, help manage inflation, and contribute to sustainable economic development.