Agri, rural credit policy for FY26 announced

Bangladesh Bank has announced its Agricultural and Rural Credit Policy and Programme for the fiscal year 2025–26, raising the farm loan disbursement target by 2.63 percent to Tk 39,000 crore in a bid to boost agricultural production, ensure food security, and support rural livelihoods.

The new policy prioritises financing for climate-resilient agriculture, mechanisation, and diversification of crops, alongside extending greater credit access to small and marginal farmers, women entrepreneurs, and climate-affected communities.

Under the guidelines, all scheduled banks are required to formulate their own annual agricultural credit programmes in line with the central bank's directives and submit them by a specified deadline. Banks failing to achieve their targets will have to deposit the shortfall amount into Bangladesh Bank's Agriculture and Rural Credit Department, without interest, for refinancing to other banks.

The policy also places emphasis on climate-smart agriculture and the technological adoption of financing agricultural machinery, irrigation equipment, and renewable energy for farms. Women's empowerment and financial inclusion are also given importance.

In addition, the central bank has instructed banks to simplify loan disbursement procedures, ensure timely lending before planting seasons, and strengthen monitoring to prevent misuse of funds.

Officials said the policy aims to sustain momentum in agricultural output while safeguarding rural incomes amid rising input costs and climate change challenges.