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FREE SEED DISTRIBUTION

Govt raises spending, covers more farmers

Finance ministry sets fresh credit guidelines for banks

REJAUL KARIM BYRON
The agriculture ministry yesterday raised the budget from Tk 130 crore to Tk 158 crore for free distribution of seeds and fertilisers among 26.65 lakh flood-affected small and marginal farmers to help them cultivate 10 crops.
The finance ministry in a circular the same day, meanwhile, laid down fresh guidelines for the Bangladesh Bank, the three nationalised commercial banks (NCBs) and two specialised banks in Bangladesh Krishi Bank and Rajshahi Krishi Unnayan Bank to disburse new credit and reschedule outstanding loan to farmers for post-flood rehabilitation.
The ministry forms a high-powered committee today headed by Deputy
Governor of Bangladesh Bank Nazrul Huda to keep a close watch on credit disbursement. It would be asked to report back to the ministry about the operations.
The latest moves are part of a comprehensive agriculture rehabilitation programme the government has taken to help the farmers recover from the flood losses and boost the farm sector's contribution to the GDP, according to the officials at both ministries.
The agriculture ministry at a meeting yesterday presided over Agriculture Minister MK Anwar also decided to bring another 1.65 lakh farmers under the programme, which initially was tailored for 25 lakh flood-affected farmers.
Tk 107 crore of the revised amount would be spent on distribution of fertilisers and the rest on seeds.
The seeds will now be reached to the farmers for 10 crops, instead of six decided earlier, to help them go for cultivation immediately after recession of the floodwaters. The ministry officials said the rehabilitation programme was scheduled for an August 15 start, but seed distribution has already started in the areas where the floodwaters have receded.
The finance ministry circular asked the banks to suspend realisation of farm loan in the flood-affected areas for a year. It directed the banks to reschedule all outstanding loans including classified loans for a year and relax rules for
downpayment by the defaulters. Certificate cases filed against rescheduled loans and those to be filed in the next one year would be put on hold for a year.
The circular also asked the banks to raise the ceiling for individual borrowers based on the reality facing the farmers.
The banks aim to lend about Tk 4,700 crore to farmers in the current fiscal year, which is 27 percent higher than last fiscal year's. High officials at the finance ministry predict a rise in farm output because of the government's post-flood rehabilitation programme.
The government is drawing inspiration from the fact that after
the floods in 1998, the agriculture rehabilitation programme boosted farm output by 3.24 percent from 1.63 percent of the previous year. The agricultural production reached as high as 6.92 percent in the 1999-2000 financial year.
The agriculture ministry, meanwhile, has revised up the flood damage estimates in the agriculture sector to Tk 3,184 crore, including the flooding in April this year. The revised damage assessment of the current flood now stands at Tk 2,291 crore, which earlier was about Tk 1,800 crore.
The Centre for Policy Dialogue (CPD), an independent civil society think-tank, on Thursday put its initial flood damage figure in the farm sector at Tk 2,920 crore.
Each listed farmer would get seeds and fertilisers for only one crop against 1 bigha of land. They would 5 kg seeds and 25 kg fertilisers for cultivating planted aman, 5 kg seeds and 30 kg fertilisers for boro aman, 17 kg seeds and 30 kg fertilisers for wheat, 2.5 kg hybrid seeds and 40 kg fertilisers for maze, 1.5 kg seeds and 20 kg fertilisers for mustard, 5 kg seeds and 10 kg fertilisers for mashkolai, 1 kg seeds and 20 kg fertilisers for vegetables, sugarcane seeds weighing 1,000 kg and 20 kg fertilisers, Tk 1,000 in cash and 24 kg fertilisers for betel leaf and 0.5 kg seeds and 20 kg fertilisers for cultivating chilli.
As many as 12 lakh farmers of the 26.65 lakh farmers cultivate boro paddy. The seed distribution is slated for a November 20 end and the distribution of fertiliser that starts on October 7 will draw to a close on December 31.