The New Nation - Internet Edition

ALTHOUGH the government was found quite well aware of the need to disburse agricultural loans in significantly higher amounts following the recent countrywide floods to aid agriculture's recovery, the right policy decision appears to be getting frustrated from its implementation at the field level. Reports are noted in the media that the disbursement of these loans is going on at a lackadaisical pace. The flow of the loans has actually decreased to farmers when the fastest receipt of the same in right proportions are needed in many cases by them to carry on production activities fully. The loans would be relied on to buy seeds, fertilisers and other inputs-promptly-to engage in compensatory activities after the large scale destruction of paddy and other crops. In some areas, seedlings planted after the first round of flood were destroyed again in the second round of flooding. Besides, the woes of the farmers would be experienced as unbearable over a large part of the country after Friday's fiercest cyclone.

According to preliminary reports, the cyclone has ravaged 95 per cent of standing crops in 11 districts. The loss figures are likely to mount considerably after a better stock taking is carried out. The farmers in the cyclone-affected areas would require quick and ample distribution of agricultural loans to regain some capacity to engage in farming activities again. If they receive loans quickly, they can attempt fresh planting of rabi or winter crops to make up for the latest losses. A total amount of some Taka 66.19 billion as agricultural loans to be disbursed, was declared as provisioned by the government some months ago even before the flood waters had subsided. But the problem is not availability of resources for giving away as agricultural loans but the administration aspects of such loan disbursement. Krishi Bank and the nationalised commercial banks (NCBs) should play leading roles in distributing these loans efficiently.

The rate of disbursement continues to be so laggard that Bangladesh Bank (BB) had to write to the management of the NCBs to step up the rate of disbursement. Poor monitoring and supervision at the field level are at the roots of such a slow pace of distribution of agricultural loans although from the highest levels of the government, great stress is being laid to this task. The government-run banks which have been given the responsibility to run this special post-flood agricultural loan programme, are short of manpower needed to do the work competently. No less important is running the loan programme cleanly or incorruptibly. Farmers have accepted as an unwritten custom that they have to grease the palms of bank officials to get loans. Typically, a loan taker has to part with, say, Taka 200 for a loan of Taka 2000 as bribe to the loan-dispensers. This practice must be put to an end through improved supervision and monitoring activities in this difficult year for farmers.