Cattle fattening sector can borrow from Tk 5,000cr refinance scheme

The Bangladesh Bank has included the cattle fattening sector in the list of the beneficiaries that would qualify for loans under its Tk 5,000 crore refinance scheme aimed at ensuring food security.

In November, the central bank formed the refinance scheme to ensure food security as the banking regulator thinks the world might face a food crisis in the days to come.

The loans will have to be disbursed to the sectors such as the cultivation of rice, vegetables, fruits and flowers, fish and poultry farming, and milk production, it said at that time.

In a notice today, the BB said the cattle fattening sector has been added to the sectors that would be eligible for loans under the scheme.

In Bangladesh, there has been growing interest among farmers in rearing and fattening bulls, encouraged by high domestic prices which enable making a profit alongside an Indian clampdown on illegal inflows of cattle.

Over the past five years, the number of farmers engaged in the practice has risen alongside the number of bulls.

In 2017, there were 33.42 lakh cattle under the special regime, which involves nutritious diets and movement restrictions, according to the Department of Livestock Services. Last year, farmers reared 41 lakh cattle.

Under the central bank scheme, farmers will be able to take loans at 4 per cent interest.

Banks will be allowed to take loans at 0.5 per cent interest from the fund, meaning that they will enjoy an interest margin of 3.5 per cent after disbursing the fund to the farmers.

Farmers will have to repay the fund within 18 months, including a grace period of three months.

Growers who cultivate paddy, vegetables, fruits and flowers will be able to get Tk 2 lakh in loans without any collateral.