Written by The Banking Post
Bangladesh Bank has announced its Agricultural Credit Policy for the fiscal year 2025-26 on Tuesday, July 12, setting an ambitious agenda to boost rural lending, promote sustainable farming practices, and enhance financial inclusion in the agricultural sector. The policy outlines increased credit disbursement targets, expanded coverage for marginal farmers, and a stronger push for climate-resilient agricultural investment.
Bangladesh Bank’s Agricultural Credit Department (ACD) has released the Agricultural Credit Policy and Program for the financial year 2025-26, focusing on improving access to finance for rural communities and ensuring sustainable agricultural development. The policy mandates all scheduled banks to prioritize lending to small and marginal farmers, agricultural entrepreneurs, and women engaged in farming.
The central bank has set a higher disbursement target compared to the previous fiscal year, reflecting the government’s commitment to food security, rural poverty alleviation, and agricultural modernization. Special emphasis has been placed on financing crops, livestock, fisheries, and agro-based industries, with a view to creating employment opportunities and increasing productivity.
In line with the country’s climate adaptation strategy, the policy encourages banks to allocate more funds for climate-smart agriculture, irrigation efficiency projects, and renewable energy integration in farming. It also highlights the need for capacity-building programs for farmers to adopt modern technology and improve yields.
The ACD has also instructed banks to maintain transparency in loan disbursement processes, minimize procedural delays, and ensure that agricultural loans reach the intended beneficiaries without middlemen interference. Monitoring and reporting mechanisms have been strengthened, with quarterly performance evaluations to be conducted by the central bank.
With the introduction of the FY2025-26 Agricultural Credit Policy, Bangladesh Bank aims to accelerate agricultural growth, improve rural livelihoods, and strengthen the resilience of the sector against economic and environmental challenges.
