BB sets 54% higher agri and rural credit target

Bangladesh Bank (BB) has set a 54 percent higher year on year target for disbursement agricultural and rural credit for the fiscal year 2026-27, as it aims to boost farm production, contain inflation and stimulate the rural economy.

The central bank said banks will disburse Tk 60,000 crore in this fiscal year, up from Tk 39,000 crore target for the previous fiscal year 2025-26.

Tap here to add The Daily Star as a trusted source

In the FY26, banks lent Tk 42,834 crore, surpassing the target for the year, according to the BB data.

The central bank said the current government's key objective is to stimulate the rural economy through sustainable development of rural areas, create employment, and increase national macroeconomic output by achieving self-reliance among the rural population.

It has set high target considering the importance of adequate credit flow to the agricultural sector to achieve economic growth and control inflation through increased agricultural production, said the BB at a press conference today at its headquarters.

BB Governor Md Mostaqur Rahman unveiled the target. 

The BB said banks can identify genuine farmers based on certificates obtained from local agricultural extension officers, fisheries and livestock officers, or through farmer’s card introduced by the government.

The central bank said it has relaxed rules related to group-based agricultural credit disbursement.  

Under the updated framework, the BB has brought fish fingerling production in hatcheries, duck and poultry chick production, and camel farming under credit coverage. 

The policy also incorporates regulations for credit aimed at organic fertiliser production. It has also introduced new crop production calendars and repayment schedules.

For year-round cultivation of fruits including banana, papaya, mango, lemon, guava, and litchi, BB has determined specific credit disbursement and harvest periods, fixing the repayment timeline to commence after the harvest.