Agro-Business Financing in Bangladesh

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European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.21, 2012

www.iiste.org

Agri Business Financing In Bangladesh, a Case Study on Bangladesh Krishi Bank Nushrat Nahida Afroz *(Corresponding author) Lecturer, Bachelor of Business Administration Mawlana Bhasani Science and Technology University *E-mail:nnafroz20@yahoo.com. Abstract This paper discusses the important issues pertaining to the agribusiness activities in Bangladesh. The author presents an overview of Bank wise involvement in financing agribusiness. Moreover, the paper also enlightens the investment issues in agriculture sector and other promotional aspects especially with reference to the entrepreneurship in respect of the development of agribusiness. Key words: Agri business, Gross domestic product, Export, Import, Fiscal Year. 1. Introduction Bangladesh the home of 140.00 million people is one of the developing countries of the world characterized by high incidence of landlessness and a labor surplus economy. The global economic environment is undergoing drastic changes with the concept of market economics for sustainable development. Under such an environment, production in both the Agribusiness and Industrial sectors are stagnating the aid pipeline, drying up remittances and as a sequence in investment growing shy. Only exports, especially in non-traditional areas, offer the most promising avenue for sustained growth. In this context agri related business processing industries have enough and fresh opportunities for employment and income generation through increased domestic agricultural production. Bangladesh has considerable potential to increase the production of conventional and non-conventional fruits, vegetables as well as aquatic resources. Production of major agri products in current prices during the last 5(five) years is shown in Annexure-A. The Annexure reveals that there is an increasing trend for all items. Exploitation of this potential needs are well developed and systematic export promotion programme of agricultural produces will have a significant impact on agriculture and economic development. This will ensure higher income to farmers for earning foreign currency and expand agro processing industries. To boost up export earnings from agriculture produces, the government has taken some special measures like supplying high yielding variety seeds, extension services, incentive for exporting agriculture produces etc.

The Sectoral share and growth rate of GDP of major agri products at current prices 2007-2008 to 2010-2011 is shown in Annexure-B. The Annexure reveals that the contribution of major agri business activities shows slightly up and down trend during the last five years. So, measures need to be taken by both the financial institutions and concerned organization including agricultural extension, Fisheries and live stock Departments to boost up production of agricultural produces and development of agribusiness sector. Objective of the study :> To study the activities of Bangladesh Krishi bank in the field of agribusiness financing. >To find out the performance of the bank in the field of agribusiness financing. > To identify the problems faced by the bank and the clients in Credit operation. >To suggest remedial measures for the improvement of Bank’s Performance in credit operation. Methodology of the study: This study is basically descriptive in nature and based on secondary information. The study analyses published books, different published research works, newspaper, magazines, reports of various

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European Journal of Business and Management ISSN 2222-1905 (Paper) ISSN 2222-2839 (Online) Vol 4, No.21, 2012

www.iiste.org

government authorities, and websites. Different officials of Bangladesh Krishi Bank were interviewed to obtain the relevant data. This paper is divided into seven parts. Section 2.0 describes the definition & dimension of Agribusiness. Section 3.0...
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