Bangladesh Bank has created a Tk3,000 crore refinancing fund to support an agro-based special economic centre across 16 districts in Rajshahi and Rangpur divisions, opening a new financing route for farmers and agricultural entrepreneurs. The scheme is designed to support the full value chain rather than only farm production. Eligible financing can cover cultivation, preservation, processing, transportation, marketing, infrastructure and the export of agricultural and agro-based products. The maximum interest or profit rate for customers has been set at 7 percent, which can make formal credit more manageable for businesses that often need large amounts of working capital before earning revenue from crops or processed goods. The fund also provides different loan ceilings for different activities. Agricultural production can receive up to Tk30 lakh, while preservation, transportation, marketing and infrastructure projects can receive much larger financing. Production and processing businesses and export-oriented activities are also included. This wider structure matters because agricultural growth depends on more than growing crops. Farmers need cold storage, warehouses, seed facilities, grain silos, reliable transport and processing capacity if they are to reduce waste and sell products at better times and in better markets. Bangladesh Bank expects the programme to help reduce post-harvest losses and distress sales that occur when farmers have limited storage or transport options. That could improve returns for producers while also making the food supply chain more efficient. The facility is planned to remain active for three years, and 38 participating banks have already signed agreements under the programme. A stronger agricultural value chain can also create opportunities beyond farming itself. Cold-chain operators, transport companies, food processors, packaging businesses, warehouse managers and exporters can all benefit when production is linked more closely with modern logistics and markets. For northern Bangladesh, where agriculture is central to many local economies, the new fund creates room for more value to remain close to farming communities. If financing reaches productive farmers and enterprises with proper monitoring, the scheme can help turn agricultural output into higher-value products, generate rural employment, strengthen agro-industry and increase the ability of Bangladeshi producers to serve both domestic and export markets.
