BB sets 54% higher agri, rural credit target

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

The central bank has set the target at Tk 60,000 crore, up from Tk 39,000 crore in FY26.

Tap here to add The Daily Star as a trusted source

Banks disbursed Tk 42,834 crore in agricultural and rural credit in FY26, exceeding the target for the year, according to BB data.

The central bank said increasing credit to the agricultural sector would help stimulate the rural economy, create jobs and increase national output by helping rural people become self-reliant.

“Considering the importance of adequate credit flow to the agricultural sector, the target has been set high to support economic growth and control inflation by increasing agricultural production,” the BB said at a press conference at its headquarters yesterday.

BB Governor Md Mostaqur Rahman unveiled the new target.

The BB said banks can identify genuine farmers through certificates issued by local agricultural extension, fisheries and livestock officers or through government-issued farmer cards.

The central bank has also relaxed rules on group-based agricultural credit.

Under the revised rules, loans can now be provided for fish fingerling production at hatcheries, duck and poultry chick production, and camel farming.

The policy also includes guidelines for loans to organic fertiliser producers. It has introduced new crop production calendars and repayment schedules.

For year-round cultivation of fruits such as banana, papaya, mango, lemon, guava and litchi, the BB has specified credit disbursement and harvesting periods.

Farmers will start repaying their loans after harvesting their crops.