To boost agricultural production, commercial banks have set a target of disbursing Tk39,000 crore in loans to farmers in the current 2025–26 fiscal year, an increase of 2.63% from the previous year’s target of Tk38,000 crore.

On Tuesday, Bangladesh Bank Governor Dr Ahsan H Mansur officially announced the new fiscal year’s ‘Agricultural and Rural Credit Policy and Program’.

The event was attended by the Director of the Agricultural Credit Department and CEOs and MDs of various commercial banks.

According to the Bangladesh Bank, the increased target aims to strengthen food security, boost investment in agriculture, and provide greater support to farmers.

The new policy includes several changes and additions, such as: Raising the allocation for the livestock sector to 20%, Allocating 2% for irrigation and agricultural machinery, Waiving CIB service charges for loans up to Tk2,50,000 Expanding contract farming and agent banking, Including new crops like cucumber, taro stem, beetroot, black cumin, ginger, garlic, turmeric, and date molasses in the loan-eligible crop list, And directing region-based loan disbursement based on production potential.

The central bank expects that adequate credit in the agriculture and rural sectors will help increase production, curb inflation, generate employment, and contribute to building a sustainable economy.