Agricultural Credit Market in Bangladesh
Structure and Utilization Pattern
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Most of the farmers of Bangladesh are small land holders with or without small savings and living below poverty line. They have hardly ability to adopt modern technology to boost up food production in order to feed the growing population. Hence, the farmers in general and marginal, small and tenant farmers in particular, need adequate financial assistance from external sources. The gradual expansion of institutional network (Grameen bank and hundreds of other national, international and local based NGOs) in remote village areas of the country have contributed positively to shrinking the undesi...
Most of the farmers of Bangladesh are small land holders with or without small savings and living below poverty line. They have hardly ability to adopt modern technology to boost up food production in order to feed the growing population. Hence, the farmers in general and marginal, small and tenant farmers in particular, need adequate financial assistance from external sources. The gradual expansion of institutional network (Grameen bank and hundreds of other national, international and local based NGOs) in remote village areas of the country have contributed positively to shrinking the undesirable influence of informal credit sources on rural people. However, non-institutional sources of credit are still likely to play a dominant role in distributing credit especially in remote areas as before in the country. The present study will provide some factual information regarding credit structure, amount of credit received, mode of credit use and repayment behavior of the farmers. It would help the planners and policy makers to formulate more pragmatic principles and practices consistent with overall agricultural development in the country.
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