Economic Reporter :
Loan disbursement by scheduled banks to farmers involved in cultivating four types of import-replacing crops – pulses, oil seeds, spices and maize – stood at 33.83 per cent in the first six months of the financial year 2016-17 against the annual target of Tk 90.07 crore.
The BB set a loan disbursement target of 90.07 crore for the FY17 equalling the same loan disbursement target of the FY16 as the banks failed to achieve an aggregate target of loan disbursement in the last fiscal year.
The banks disbursed Tk 81.87 crore in loans to farmers involved in cultivating the import-replacing crops against the annual target of Tk 90.07 crore in the FY16.
The banks disbursed Tk 30.70 crore in the first half of this fiscal year, the BB data showed.
A BB official told The New Nation on Monday that the central bank had frequently asked the banks to stimulate their credit programme for the four crops, but they did not respond much to the BB’s direction.
The banks continue to be reluctant to disburse the loan as they usually earn comparatively less profit by distributing the loan to the marginal farmers.
The government set the interest rate at 4 per cent on special agricultural credit to be disbursed for cultivation of pulses, oil seeds, spices and maize.
The government gives subsidy to banks at 6 per cent interest rate so that they can get 10 per cent interest in total when they disburse loan to the farmers at 4-per cent rate. The country usually imports huge amount of pulses, oil seeds, spices and maize to meet local demand.
The loan is being given to discourage import of the items and reduce annual import payment, the BB official said.
The banks should take initiative to disburse more for the four types of crops in the greater interest of the country’s economy, the official said.
In the first six months of the FY17, the four state-owned banks – Sonali, Janata, Agrani and Rupali – and four specialised banks – Bangladesh Krishi Bank, Rajshahi Krishi Unnayan Bank, Bangladesh Development Bank and BASIC Bank – disbursed Tk 25.93 crore to the farmers for the four crops.
