Bangladesh Bank (BB) has introduced a Tk 3,000 crore refinancing fund to bolster the development of an agro-based economic centre in the northern region. This initiative aims to support farmers and agro-based entrepreneurs through low-cost financing, thereby enhancing the agricultural value chain. The fund is designed to cover various aspects of agricultural production, preservation, processing, transportation, marketing, and export. It will be effective for three years and will serve 16 districts under Rajshahi and Rangpur divisions.
Supporting Agricultural Value Chain
The refinancing fund will provide financial assistance to farmers and agro-based entrepreneurs, enabling them to develop an integrated agricultural value chain. This includes production, preservation, processing, transportation, marketing, and export of agricultural products. By offering low-cost financing, the fund aims to reduce post-harvest losses and distress sales, which are often caused by inadequate infrastructure such as cold storage, modern warehouses, and efficient transportation systems.
Under the scheme, the maximum interest/profit rate at the customer level is set at 7 percent. Borrowers can receive up to Tk 30 lakh for agricultural production, Tk 40 crore for preservation, transportation, marketing, and infrastructure, Tk 40 crore for production and processing of agricultural and agro-based products, and Tk 15 crore for export of agricultural and agro-based products.
Expected Benefits and Impact
Bangladesh Bank anticipates that this initiative will create financing opportunities for essential infrastructure such as cold storage, modern warehouses, seed storage facilities, and cold-chain logistics. The fund is expected to contribute to the value addition of agricultural products, development of agro-based industries, rural employment, income generation, and increased export capacity of agricultural products.
Following the issuance of a circular on July 6, 2026, Bangladesh Bank signed agreements with 38 participating banks on August 31 at a programme held at the Jahangir Alam Conference Hall of Bangladesh Bank. Deputy Governor Dr Md Kabir Ahmed attended the agreement-signing ceremony as the chief guest.
This initiative is a significant step towards modernizing the agricultural sector in Bangladesh, particularly in the northern region. By providing the necessary financial support, the refinancing fund aims to transform the agricultural value chain, making it more efficient and profitable for farmers and entrepreneurs alike.
