By AKM Kamal Uddin Chowdhury
DHAKA, June 13, 2020 (BSS) -Thanks to a newly-introduced government credit scheme, marginal farmers across the country now can stockpile their crops at barns for selling at government’s procurement centers to grab fair prices and maximize benefit amid the coronavirus pandemic.
Palli Sanchay Bank (PSB) has launched the project titled “Grain Stock Loan” this year for the marginal farmers aimed at ensuring the fair prices of their produces and they don’t need to rush to the market for selling their crops immediately after harvesting.
“Generally, marginal farmers, who need to repay a portion of expenses for production, are compelled to sell their produces immediately after harvesting,” PSB Managing Director Akbar Hossain said.
“But they can make more profit if they stockpile crops at homes and sell it after two or three months. For ensuring handsome profits for the farmers, we have introduced grain loans,” he said.
Akbar said due to the global COVID-19 pandemic, the price of paddy in the haor areas has come down significantly this year.
“That’s why, we’ve launched the loan programme, and the members of the Village Development Association (VDA) under the ‘Amar Bari Amar Khamar’ project are getting benefits from this scheme,” he said.
“Besides, the crop market has also been protected from the hands of the syndicate,” he added.
Akbar, also an additional secretary, said field-level officials of the bank have already distributed Taka 7 crore among 3,200 members across the country, especially in the haor areas.
“This has received a overwhelming response from the members,” he said.
The PSB managing director said under the project, the bank is disbursing a loan of Taka 20,000 to each of the members for equivalent of 25 maunds of paddy to help farmers not selling it at low price.
For the loan facilities, he said, the farmers can sell their paddy after two or three months and repay the loan at only 5 percent service charge, which is only Taka 250 for the entire period.
Golapzan Begum, a member of Lakma Amar Bari Amar Khamar VDA under Tahirpur upazila in Sunamganj district, availed of a loan of Taka 20,000.
“I didn’t sell paddy immediately as my urgent demand was met from the loan. I’ve around 40 maunds of paddy for sale. If I can supply 25 maunds of paddy to the government purchasing center after three months, I’ll get Taka 25,000-26,000,” she said while talking to BSS.
Golapzan informed that when they harvested the boro paddy one month back, the price of per maund paddy was only Tk 400 to Tk 500. “But if I sell after two months, the price will be Taka 800 to Taka 900 per maund,” she said.
Golapzan continued:”I’ve been benefited a lot from this loan. I’ve to pay only Taka 250 in 3 months against the loan of Taka 20,000. If this programme continues in all seasons, then the marginal farmers will benefit immensely.”
Another farmer, Zillur Rahman, a member of the Ratan Shri Amar Bari Amar Khamar VDA under the Thairpur upazila, also took Taka 20,000 loan from the PSB. He is also waiting for a good price of the boro paddy.
Regarding the newly-introduced loan scheme, eminent economist and former Bangladesh Bank governor Dr Salehuddin Ahmed said this concept will reduce the activities of the middlemen and help ensure fair price of crops for the marginal farmers.
Palli Sanchay Bank (PSB), which is focused on bringing in disadvantaged people, especially women entrepreneurs under institutional financial services, has been providing collateral-free loans to rural poor since its inception in 2014.
Unlike many other banks, PSB encourages and helps underprivileged people in generating income and building savings, and eventually use their savings in providing more loans under its revolving credit scheme.
PSB provides financial and banking supports only to the members of the VDA who want to do income-generating activities under the ‘Amar Bari Amar Khamar’ project.
The loans are given for cow fattening, raising milking cows, manufacturing agro-industrial tools and spare parts, producing vegetable and spices and establishing agro-based small industries, cottage industries, fisheries and nursery.
The amount of loan of the PSB depends on the investment plan of the borrowers. However, a small entrepreneur can get a loan of Taka 10,000 to Taka 50,000; medium entrepreneur over Taka 50,000 to Taka 300,000 and special entrepreneur over Taka 300,000 to Taka 100,000. The rate of interest for all of the loans is 8 percent.
Besides, the VDA members can take benefit of the different saving products of PSB including general savings, special savings, social security savings, student savings, term deposits and rural pension scheme.
Apart from the financial support, the bank is also imparting necessary training to the VDA members to improve their skills in poultry, fisheries, livestock, nursery and agriculture.