The Bangladesh Bank (BB) has launched a refinancing scheme worth Tk 10 billion -- aiming to reduce import dependency of wheat and maize through facilitating local production of the food grains.
Under the scheme, the farmers can avail low-cost fund by paying maximum 4.0 per cent interest, while the lenders can receive funds at 0.50 per cent from the central bank, according to a notification - issued by the BB on Thursday.
Landless farmers, who own less than 0.494 acres of land, small and marginal farmers, who own 0.494 to 2.47 acres of land, and share-croppers will be eligible to receive loans up to Tk 0.20 million without any collateral.
The farmers, however, will not be allowed to adjust their previous loans with the fresh loans under the scheme, the BB noted.
The money will come from the central bank's own fund and its tenure will end on June 30, 2025.
Interested scheduled banks have been asked to sign participatory agreements with the BB Agricultural Credit Department within 10 days from issuing the notification.
The BB's latest move came against the backdrop of rise in demand for the cereals. It will help to ensure smooth supply of the items in the domestic market.
Currently, Bangladesh is able to produce around 1.10 million tonnes of wheat annually, while around 6.50 million tonnes are imported to meet the growing local demand for the cereals.
On the other hand, the country can produce around 4.50 million tonnes of maize, while around 2.5 million tonnes are imported on the same ground.
