& çâÌæÚUæð´ ·¤è ¥ôÚU Îð¹Ùæ ÁæÚUè ÚU¹ð´ ¥ÍæüÌ ¥ÂÙð ÜÿØ ÂÚU ŠØæÙ ÚU¹ð´Ð ãæÚU Ù ×æÙð´, €UØô´ç·¤ ·¤æ× ·¤ÚUÙð âð ¥æÂ·¤ô ©gðàØ ·¤è Âýæç# ãôÌè ãñ ¥õÚU ÁèßÙ ·¤æ ¹æÜèÂÙ ÎêÚU ãôÌæ ãñÐ ÖÜð ãè ÁèßÙ ×ð´ ç·¤ÌÙè Öè ·¤çÆÙæ§ü €UØô´ Ù ¥æ°, çÁ™ææâæ ¥õÚU ©ˆâæã ÕÙæ° ÚU¹ð´Ð ŠØæÙ ÚU¹ð´, ÜÿØ ã×ðàææ ¥æÂ·Ô¤ Âæâ ãôÌð ãñ´ çÁ‹ãð´ ÂæÙð ·Ô¤ çÜ° ÂýØæâ ¥æÂ ·¤Öè Öè àæéM¤ ·¤ÚU â·¤Ìð ãñ´Ð

Crop insurance can boost farm credit

Say bankers on eve of budget

Sajjad ur Rahman
Agriculture or crop insurance, if introduced, will encourage banks to lend more to the farm sector on which the majority of the country's 150 million population depends for their livelihood, according to top bankers.
They said the objective of the insurance will be to provide insurance coverage and financial support to farmers in case of crop damage caused by natural calamities, pests and diseases.
The bankers said the insurance scheme will not only help the farmers with financial security but will give the banks a sort of guarantee.
“Commercial banks will come up with agriculture credit if crop insurance is introduced," said Muhammad A (Rumee) Ali, former deputy governor of Bangladesh Bank (BB) and incumbent chairman of BRAC Bank.
Shahjahan Bhuiyan, managing director of United Commercial Bank, said real farmers in fact do not get any credit. It goes to land-
owners.
“The landowners do not cultivate now and the real farmers are landless. The banks will never go to lend the landless unless there is a crop insurance scheme," said Bhuiyan.
Ehsanul Haque, managing director of Prime Bank, said: “We ll be encouraged and motivated if crop insurance is introduced."
Most of the developed countries have different types of schemes on crop insurance. Even some South Asian counties such as India, Pakistan and Sri Lanka have such scheme. India experimentally launched crop insurance in 1979 and introduced it formally in 1985.
Pakistan has a crop insurance scheme, which not only gives protection to crops but offers farmers life insurance coverage.
But top bankers said Bangladesh talks more than taking any actions to safeguard the farmers from the risks that affect agricultural producers and agrobusinesses.
Although the BB has recently made agriculture credit mandatory for all banks, many are yet to lend the farm sector, saying that they do not have branches to reach the rural farmers.
The bankers also fear losing their money as Bangladesh is a highly natural disaster-prone country. Cyclone Sidr in 2007 caused damage worth $1.7 billion, mostly to the agriculture sector. They believe crop insurance can give the private commercial banks a sort of guarantee.
Good news is that BB Governor Dr Atiur Rahman, who promotes developing the agriculture sector, has given special emphasis to the issue.
Rahman has already disclosed that the BB would announce an agriculture credit policy in July this year to boost farm credit.
In papers, agricultural credit is rising. According to BB data, a total of Tk 7,729 crore was disbursed during July-April period of fiscal 2008-09, an increase of nearly Tk 1,000 crore from that of the same period in previous fiscal year.
Some Tk 8,580 crore was disbursed in fiscal 2007-08.
But the bankers question about the quality of the credit. “The banks give credit to a conglomerate for its agro-based industries and mention it as farm credit,” a managing director of a private bank said requesting not to be named. He cited example of Pran Group.
The central bank could offer banks incentives, including reduction in cash reserve requirement (CRR) with the BB and tax benefits as well.
“A bank can also be given a district-wise target for lending to the farm sector,” suggested Shahjahan Bhuiyan.
To reach the rural farmers, Rumee Ali said banks can partner with non government organisations.
The bankers said if a bank fails to lend real farmers, it can be punished by not giving authorised dealership, permission for new branch opening and remittance transaction.
Bangladesh is an agrarian country with nearly 60 percent of its population depending on agriculture for their livelihood. Crop insurance has got importance with large-scale damage caused by pest attacks, crop diseases and the will of the weather, bankers said.
sajjad@thedailyslar.net