Anayetur Rahaman

The Bangladesh Bank (BB) has decided to pay subsidy to the State-owned Commercial Banks (SCBs) who disburse loan to salt farmers at reduced interest rate, a central official said.

The interest rate has been set at 4 percent which previously hovered around 10 to 13 percent for the share croppers, small and marginal salt farmers.

The central bank issued a circular yesterday regarding loan disbursement at reduced rate to help boost salt cultivation in the coastal region of the country.

According to the circular, the Bangladesh Krishi Bank, Sonali Bank Ltd, Janata Bank Ltd, Agrani bank Ltd and Rupali bank Ltd can disburse loan to a salt farmer up to Tk 44,000 for per acre of land.

The loan expenditure heads include purchase of polythene Tk 10,000, drawing water Tk 5,000, labour cost Tk 5,000, land rent Tk 21,000 (maximum) and construction of earth protection with others Tk 3,000.

The loan disbursement begins from the month of December and continues till May of next year, as directed in the circular.

The circular also directed the banks to recover loans within 12 months of disbursement and to submit their interest loss subsidy demands by one month of loan recovery.

As per the BSCIC records, 43,460 farmers were involved in salt cultivating on 67,751 acres of land mainly in Cox’s Bazar with some parts of Chittagong and Satkhira in fiscal year 2009-2010. But the farmers experienced huge loss in last fiscal as the price of per kg salt reduced to Tk 1 while production cost is over Tk 3. The farmers produced 1.71 million tonnes of salt against the target of 1.35 million tonnes in last fiscal.

News: Daily Sun / Bangladesh/ jan-27-2011