In an effort to boost food grain yields and lessen the nation’s reliance on imports, Bangladesh Bank (BB) has established a refinancing program worth Taka 1,000 crore for wheat and maize growers.
In order to do this, the central bank today published instructions on how to implement the program that also aims to reduce dependency on imports.
A customer can obtain a loan under the plan with an interest rate of 4%. Banks will lend money directly to farmers while charging a 0.50 percent interest fee to the central bank.
According to the guidelines, local output of wheat and maize is insufficient despite increased demand. As a result, to assure a steady supply of the products and the items made from them, the nation must import a substantial amount of cereals. Bangladesh must therefore spend a sizable sum on foreign currency.
According to the BB, a decision has been made under the circumstances to announce a Taka 1,000 crore refinance program. The program will last through June 2025.
Banks would have to provide loans to borrowers directly through their networks, giving priority to regions ideal for growing wheat and maize.
Small and marginal farmers who possess 0.494 to 2.47 acres of land or less, landless farmers who own less than 0.494 acres, and sharecroppers may be eligible for loans of up to Tk 2 lakh without any type of collateral.
According to the BB, the loan provided under the scheme cannot be used to pay off previous loans.
