The golden fibre of Bangladesh gets a boost as a refinancing scheme to ensure reasonable price for the growers.
Jute is traditionally a cash crop for the farmers. The sales revenue provides much needed cash stream after harvest and also throughout the year.
Under Bangladesh Bank’s refinance scheme, BRAC Bank Limited will provide easy term credit to the millers and traders who purchase raw jute from the farmers. Without financing, the millers and traders do not usually show much appetite to purchase just after the harvest. The refinancing with subsidized rates will help ensure reasonable price for the farmers.
This decision came after BRAC Bank Limited signed the participation agreement for the refinance scheme of Bangladesh Bank worth BDT 300 crore for jute sector.
Chowdhury Akhtar Asif, deputy managing director of BRAC Bank Limited, exchanged documents with Md. Habibur Rahman, general manager of Agricultural Credit Department, Bangladesh Bank. Al-Amin, head of local corporate, S M Saiful Islam, head of Agriculture and MFI Finance of BRAC Bank Limited, were also present at the agreement signing ceremony held at Bangladesh Bank recently.
