Dhaka -Specialists urged alternative financing for agriculture development in a workshop organized by Dhaka Chamber of Commerce and Industry (DCCI) and USAID’s Agriculture Value Chains (AVC) Project at the DCCI. UNB news agency reported
Md. Mahadi Hasan, Manager Investment, BD Venture Limited, Kamrul Hasan, Director, Consiglieri Limited and Bijon Islam, CEO, Light Castle Partners made powerpoint presentations on alternative financing in agriculture sector, said a press released issued by DCCI on Monday.
The speakers said government has formulated Alternative Investment Rules in 2015. They also said Alternative Financing in agriculture is not popular in Bangladesh because of its risk management issues. But this will help capital starved SMEs or start-ups to grow.
Few venture capital companies and private equity associations in Bangladesh are operating alternative finance.
They also said that any kind of backward and forward linkage firms can be considered for alternative investment. Agriculture sector has huge opportunity for financial services for its potential returns.
DCCI President Abul Kasem Khan said Bangladesh’s agriculture sector is the largest sector contributing to the economy of Bangladesh. Still Bangladesh’s economy is based on our agriculture. Our farmers are basically entrepreneurs, he said.
They should have easy access to finance so that they can grow and add value to their crops. He also said that value addition and use of technology will make our agro-products more competitive in the world market.
General Manager of SME SPD of Bangladesh Bank Swapan Kumar Roy said that Bangladesh Bank has a special re-financing fund for agriculture sector.
At a rate of 5pc interest Bangladesh Bank gives the fund to scheduled Banks to disburse it at a rate of 10%. But women entrepreneurs will get the loan at 9 percent interest rate.
Former Vice President of DCCI Md. Shoaib Chowdhury said land loss and natural calamities are some of the challenges for our agriculture sector. Every year Bangladesh loses 1% percent of its arable land.
