Cenbank launches Tk3,000cr refinancing scheme to boost North Bengal's agro economy

The Bangladesh Bank has launched a Tk3,000 crore refinancing scheme to strengthen the agricultural value chain and develop North Bengal into a specialised agro-based economic hub.

The central bank today (6 July) issued a circular outlining the three-year fund, which will be available exclusively to businesses and borrowers in the districts under Rajshahi and Rangpur divisions.

The facility, carved out of a broader Tk60,000 crore fund created from scheduled banks' surplus liquidity, will be administered by the Bangladesh Bank.

Participating banks will receive refinancing at 4%, while the maximum lending or investment rate for end borrowers has been capped at 9%.

The fund aims to strengthen the entire agricultural value chain – from production and storage to processing, marketing and exports – to address long-standing infrastructure and supply chain bottlenecks in the northern region.

Under the allocation, 35% of the fund will finance agricultural product storage, transportation, marketing and infrastructure, including environmentally friendly cold storage, seed warehouses, silos, cold-chain logistics, post-harvest facilities and related working capital.

Another 35% will support agro-processing and agro-based industries, including food processing, agricultural product manufacturing and marketing, and working capital.

The remaining allocation includes 15% for agricultural production – covering crops, fisheries, livestock, agricultural and irrigation machinery, and other rural credit activities – and 15% for agricultural exports, including export-oriented production, processing and related activities.

Loan ceilings vary by sector. Agricultural producers may receive up to Tk30 lakh, while projects involving storage and logistics infrastructure or agro-processing industries will be eligible for up to Tk40 crore. Agricultural exporters may obtain financing of up to Tk15 crore.

Banks may increase or reduce the prescribed financing limits by up to 20% based on borrowers' actual requirements and project viability.

The Bangladesh Bank said agriculture is critical to ensuring food security, generating employment and reducing poverty. However, inadequate post-harvest management, storage, processing, marketing infrastructure and supply chains have prevented Rajshahi and Rangpur divisions from fully realising their agricultural potential.

The scheme aims to boost agricultural production and value addition, support agro-based cottage, micro, small and medium enterprises (CMSMEs), strengthen export-oriented agricultural production and supply chains, and generate rural employment.

All scheduled banks will be eligible to access the refinancing facility after signing participation agreements with the Bangladesh Bank.