Govt’s Tk 5,000cr lifeline for farmers all set
There seems to be finally some light towards the end of the tunnel for the agriculture sector as the central bank and agriculture ministry have finalised a Tk 5,000 crore rescue package for farmers, rice millers, manufacturers of all agro-products and owners of dairy farms.
Because the countrywide shutdown was announced on March 25 with the view to flattening the curve of coronavirus, farmers have already been passing sleepless nights since it essentially ruptured the distribution network for fresh produce tipping them towards a pool of losses.
With the hope of pulling them out of the pits, the federal government has prepared the package, which is because of be announced per day or two.
Together with the farmers, businesses and entrepreneurs of the agriculture sector will be allowed to take loans at 5 per cent interest from the packet, stated central bank and agriculture ministry officials involved with drawing up the bailout program.
A brand new refinance scheme will become constituted with the Bangladesh Bank's own money to implement the package.
Banks will take money from the scheme in 2 per cent fascination and disburse them at 5 per cent interest.
The borrowers are certain to get the loans as working capital, with repayment duration being 1 . 5 years, including a six-month grace period.
Farmers' income supply has completely stopped due to the ongoing shutdown while most of them usually manage on daily income, said an agriculture ministry official requesting anonymity.
Besides, the central lender is focusing on slashing the interest on farm loans by 2 percentage points to 7 %.
The BB has set a farm loan disbursement target of Tk 24,124 crore for fiscal 2019-20. Every bank must disburse 2.5 % of their total loans annually to farmers.
However the amount the banks will disburse from the refinance scheme will not count towards their total annual farm loan target, regarding to BB officials.
