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IJEDR
Research Article
Role of Banks
Bangladesh
on
Agricultural
Development
in
INTRODUCTION
The rural economy in Bangladesh depends on agriculture
which considered as the life-blood of the countrys
economy. Commercial banks play an important role in
accelerating the development of an economy. Countrys
development is not possible to achieve without the
development of the agriculture sector. The instability in
food production throughout the world is due to different
natural calamities, and the special interest of developed
nation in producing bio-fuel using crops and protectionist
policy adopted by many former food exporting countries
created a situation of urgency on ensuring food security
ourselves through investment in the agriculture sector.
Sufficient and timely supply of agricultural inputs
including agricultural credit is necessary for ensuring
more agricultural production. Agricultural credit refers to
short-term, intermediate term and long term credit
disbursed to meet the specific financial needs of farmers
Sarker MNI
010
REVIEW OF LITERATURE
Islam et al. (2014) observed that adequate availability of
credit on time is an important requirement for the rural
people, particularly under conditions of scarcity of
resources and uncertainty. Convenient and saving
facilities are perhaps even more important to smooth out
the peaks and troughs in incomes and expenditures in
the rural arena. Lack of savings facilities also force
011
Sarker MNI
012
than
2010
2011
2012
2013
2014
33.19
36.88
53.5
64.34
71.31
tea)
Year
2010
2011
2012
2013
2014
0.52
0.53
3.29
2.79
2.39
Year
Livestock
(Fig in Billion Taka)
2010
2011
2012
2013
2014
4.08
4.27
12.44
18.03
19.96
Year
Marketing of Agricultural
(Fig in Billion Taka)
2010
2011
2012
2013
2014
0.62
0.30
2.75
2.26
1.67
goods
Livestock
Disbursement of loan on Fisheries
Livestock is a major part of agriculture. The farmers
rearing livestock for managing agriculture and as like
liquid money. The table 3 shows that the disbursement of
agricultural credit on livestock in 2010 is Tk.4.08 billion.
The amount of disbursement of agricultural credit on
livestock is increasing gradually up to Tk. 19.96 in 2014.
The disbursement of agricultural credit on livestock has
rising significantly in its magnitude realizing the
013
Year
Poverty Alleviation
(Fig in Billion Taka)
2010
2011
2012
2013
2014
13.61
16.29
16.09
16.58
18.64
Year
Other agricultural activities
(Fig in Billion Taka)
2010
2011
2012
2013
2014
26.77
29.18
32.99
29.46
32.62
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POLICY RECOMMENDATIONS
Considering the pattern and present trend of agricultural
credit, we suggested some policy recommendation that
can be adopted to unlock the potential in agricultural
sector:
1. Long institutional procedures for taking loan should be
removed by authorities. Since agricultural production is
based on short time so its loan disbursement must be in
a short time. If we ensure short time loan disbursement in
agriculture sector, it would be more profitable and we can
achieve food security.
2. It is our responsibility to pay attention on farmers'
interest. Therefore, the bank must make sure the
availability of agriculture credit by advancing the private
banks so that the farmers can have access to agriculture
inputs during the required production period.
3. The loans may be extended to off-farm activities which
are related to agriculture.
4. Women farmers should have priority for agricultural
loan to empower women in decisions making on choice
REFERENCES
Alauddin M.and Biswas J., (2014), Agricultural Credit in
Bangladesh:
Present
Trend,
Problems
and
Recommendations. Journal of Economics and
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Bangladesh Bank (2014). Annual report FY 2010-2014,
Bangladesh Bank, Bangladesh. Bangladesh.
Chowdhury T. A. and Chowdhury S. S. 2011.
Performance Evaluation of Agricultural Banks in
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Management. 6(4):75-89.
Chowdhury, A. (2002). Politics, Society and Financial
Sector Reform in Bangladesh. International Journal of
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Chowdhury, H. A., and Islam M.S. (2007). Interest Rate
Sensitivity of Loans and Advances: A Comparative
Study between Nationalized Commercial Banks (NCBs)
and Specialized Banks (SBs). ASA University Review,
Vol 1, No.1
Das, A. and Ghosh, S. (2009). Financial deregulation and
profit efficiency:A nonparametric analysis of Indian
banks. Journal of Economic and Business, 61 (6):50928.
Islam M. A, Islam D. R., Siddiqui M. H. and Karim L.2014.
Importance of Agricultural Credit for Rural Development
of Bangladesh: A descriptive Approach. International
Journal of Business and Economics Research. 2
(1):68-83. doi: 10.11648/j.ijefm.20140201.18
Jahangir, N., Shill, S., and Haque, M. A. J. (2007).
Examination of Profitability in the Context of
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4(13):31-36
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Dhaka University Journal of Business Studies. 18, 131152
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What is the influence on agricultural production?
African Journal of Agricultural Research, 6(31): 64406452.
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