BB sets Tk39,000cr agricultural loan target for FY26

To boost agricultural productivity, curb inflation, and reduce poverty, Bangladesh Bank has set an agricultural and rural loan disbursement target of Tk39,000 crore for the 2025–26 fiscal year.

The target is 2.63% higher than last year's Tk38,000 crore.

The central bank's Governor Ahsan H Mansur announced the new agricultural and rural credit policy and programme on Tuesday at a press conference held at the Jahangir Alam Conference Hall of Bangladesh Bank's headquarters.

Deputy governors, the head of the BFIU, the chief economist, executive directors, and top executives of scheduled banks were present.

According to Bangladesh Bank, the target has been increased to support farmers and ensure higher agricultural output, with the ultimate aim of ensuring national food security and encouraging investment in the sector.

Key features of the new policy include:

• Increasing allocation for the livestock sector to 20%
• 2pc allocation for irrigation and agricultural machinery
• Waiver of CIB service charges for loans up to Tk 2.5 lakh
• Expansion of contract farming and agent banking coverage
• Inclusion of new crops such as cucumber, taro stems, beetroot, black cumin, ginger, garlic, turmeric, and date molasses in the credit policy
• Region-specific loan disbursement guidelines based on production potential

Bangladesh Bank expects that adequate credit supply to the agricultural and rural sectors will help boost crop production, stabilise prices, create employment, and contribute to building a sustainable economy, said the governor.