The production of food-grains has now increased by almost four times compared to the output in 1972 and more than 38 million metric tonnes of food grains are now being produced every year in the country, according to a study. “If agricultural growth achieves an annual rate of 4 to 4.5 per cent, it’s possible to earn from this sector through exports. If the GDP growth in the agricultural sector increases by 1 per cent per person, overall poverty will decrease by 0.39 per cent,” explained Dr Atiur Rahman, former governor of the Bangladesh Bank (BB), while presenting a keynote paper at a seminar titled ‘Agri Mechanization: The Role of Private Sector and Access to Finance’.

The Metal Group organised the seminar at the city’s Krishibid Institution Bangladesh Complex yesterday (Saturday). Helal Ahmed Chowdhury, supernumerary professor of the Bangladesh Institute of Bank Management (BIBM) and former managing director, Pubali Bank, Prof. Dr Abdus Sattar Mandal, former vice-chancellor of Bangladesh Agricultural University, Hideaki Kojima, managing director of MUFG Bank Ltd, Prof. Hannana Begum, former BB director, Sadid Jamil, managing director of Metal Group, Dr Md. Habibur Rahman, general manager of the BB’s Governor’s Secretariat, and representative of farmers from remote areas also spoke at the seminar, among others.

“If the bank rate can be reduced from 5 to 4 per cent for agri-machinery, then commercial banks will have additional incentives to give more loans to purchase agri-machineries at a lower interest rate through the refinancing programme,” Dr Rahman pointed out.

In the BB’s latest ‘Agricultural and Rural Credit Policy and Programme’, there was a directive to disburse 10 per cent of total loans to pisciculture, he said, adding that if a similar directive could be issued to promote agri-machinery, it would have a tremendous positive impact on agri-mechanization. He also mentioned the need to initiate low interest loan facilities for agri-mechanization, similar to that which spice cultivators and cattle rearing households enjoy.

“Food-grains production has now increased almost four times compared to what it was in 1972 and more than 38 million metric tonnes of food-grains are now being produced every year in the country,” the former BB governor said.

He requested the banks and financial institutions to provide special loans to farmers so that they can buy all necessary agri-machinery. He added that if this initiative is implemented, it would be a great example of ‘Public-Private Partnership’ (PPP). The speakers highlighted the present scenario of the agricultural sector at the seminar. They emphasised the need for loan facilities for farmers to purchase agri-machinery

The government has been implementing a project that provides subsidies to farmers who buy agri-machinery, the speakers said, adding that apart from this, the government is providing fiscal incentives to ensure better participation of the private sector in agri-mechanisation.

BB’s latest ‘Agriculture and Rural Credit Policy and Programme’ has especially encouraged the provision of loans for agri-machinery, they added.

“Metal has been working for the agri-mechanisation sector of Bangladesh since 1993. Metal was the first organisation to provide loans to the farmers for buying agri-machinery. If banks and financial institutions also start providing loans to farmers, the agri-mechanisation process will be accelerated. As a result, production of food-grains will increase and poverty will be alleviated,” Sadid Jamil said. Metal is the pioneering and leading company of mechanised cultivation in Bangladesh.