In various regions of the nation, natural disasters like floods have had a significant impact on agricultural output. During the Boro season, farmers waited to recover from this setback. There was a plan in place at the time to boost the supply of low-cost loans with favorable terms. But loan disbursements for agriculture and rural areas fell by over 11% in the first half (first six months) of the fiscal year 2024–25. Nonetheless, over the same time frame, loan recovery rose by 7.5%.

According to Bangladesh Bank’s most recent report, during the first half of the current fiscal year, the nation’s banks disbursed Tk 16,259 crore in loans to the agricultural sector. During the same period of the previous fiscal year, commercial banks disbursed Tk 18,326 crore in loans. As a result, in just one year, loan disbursements in this sector have dropped by 11.27 percent.

The agricultural sector’s loan recovery has risen by 7.52% during the same time frame (the first half of the fiscal year). The current fiscal year’s first half has seen commercial banks recover Tk 19,117 crore in loan disbursements. which was Tk 17,779 crore, the amount collected during the same time period of the previous fiscal year.

According to sector stakeholders, production during the Boro season may suffer as a result of the decline in agricultural credit flow. This is because the agricultural sector, which was impacted by two floods in the second half of 2024, now needs more credit. Conversely, banks have been disbursing fewer loans during this time.

According to the report, the total amount of agricultural credit disbursed by the nation’s banking sector as of December 2024 was Tk 56,18 crore. Additionally, the loan amount was Tk 55,395 crore as of December 2023. Consequently, the loan amount has increased by Tk 623 crore in comparison to the fiscal year prior.