Rice fields in Chengdu, Sichuan, China. UN file photo

New York, NY (BBN) - The United Nations agriculture agency has asserted that five vitally important emerging economies, known collective as the 'BRICS' countries, are well positioned to take a leading role in helping the world to achieve eradicating hunger and poverty targets.
These five countries – Brazil, Russia, India, China and South Africa – form an economic block that accounts for more than 40 per cent of the world's population and over 20 per cent of global gross domestic product (GDP).
Together, they produce more than one-third of global cereal production, with Russia becoming the largest wheat exporter in the world.
“The BRICS countries play an important political role in the international arena. Developing countries around the world look to your successes in economic development over the past few decades as an example to follow,” said Kundhavi Kadiresan, the UN Food and Agriculture Organization (FAO) Regional Representative for Asia and the Pacific, during a statement to the 7th Meeting of the BRICS Ministers of Agriculture, in Nanjing, China.
“Your experiences provide a path that can help us all meet our global collective commitments, namely those of the 2030 Agenda – its 17 Sustainable Development Goals (SDGs) – and the Paris Agreement [on climate change],” added Ms. Kadiresan.
She pointed out that, despite trends towards urbanization, as poverty in the world today is primarily rural, accelerating rural development will be key to achieving the SDGs.

She underscored that agriculture can be a driver of sustained and inclusive rural growth, saying “In low-income countries, growth originating from agriculture is twice as effective in reducing poverty as growth originating from other sectors of the economy."
Agricultural growth
Achieving agricultural growth would require research and development investments, in which BRICS countries could play a leading role as all five have strong agricultural research systems working on developing countries' challenges. Biotechnology and agro-ecological approaches would also be essential.
Information and communication technologies (ICTs) are becoming more widespread by the day, and they offer a promising approach to address many of the challenges small farmers face with regard to information on prices, weather forecasts, vaccines, financial services, and much more.
FAO is collaborating with the Organisation for Economic Co-operation and Development (OECD) and the International Food Policy Research Institute to make sure these technologies benefit smallholders.

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“Channeling refinance to solar irrigation pump, vermicompost, bio-fertiliser, bio-gas, organic farming, saline, draught and flood resistant seed varieties, roof-top gardening; granting fund from CSR to conservation of wild life, forestation of coastal region, natural crop-reservoir (cold-storage) have really brought the financial sector to line up agricultural financing with ‘green’ practices,” BB Governor Dr Rahman said.

He was addressing a Regional Dissemination Forum on Green Financing on Sunday.

The three-day long programme titled “Regional Dissemination Forum on Green Financing for Sustainable Development and Accessibility of Rural Communities” has been organised by Agricultural Credit Department of the BB in accordance with Asia-Pacific Rural and Agricultural Credit Association (APRACA).

The central bank chef also said: “We need to take a number of important measures to ensure a sustainable financial system in Bangladesh.”

The guideline and practice of environmental risk management should be continuously reviewed and strengthened accordingly, Dr Rahman explained.

He also said the BB is also focusing on greening the SME Credit Policy, and ensuring adequate financing facilities for alternative power generation options.

“These initiatives would be complementary to the real economy measures such as environmental regulations and fossil fuel subsidy reform,” he noted.

In Bangladesh, the central bank has played a leadership role in pursuing sustainability priorities within its mandate of maintaining monetary and currency stability in order to foster growth and development in the national interest, according to SK Sur Chowdhury, deputy governor of BB.

“We are not confined only to green finance but also committed to pursue digital, nearly paperless, sustainable, green banking operations by making best use of the information technology and related professional skills,” Mr. Sur Chowdhury also Chairman of APRACA explained.

He also said: “Our different initiatives particularly IT based green banking activities along with incorporation of environmental risks in core risks, green financing, creation of climate risk fund, green marketing & capacity building are moving ahead in full swing.”

At least 65 participants including 24 foreign delegates from different APRACA member countries such as Bhutan, Cambodia, India, Myanmar, Nepal, Pakistan and Thailand, attend the assembly held at Le Méridien Hotel in the capital Dhaka.

The APRACA has been involved in the promotion of rural and agricultural development and facilitation of exchange of information and expertise in rural and agricultural finance in the region since it was established in October 1977.

It’s representing 70 member institutions from 21 countries in Asia and the Pacific since its inception and the growth and development of APRACA certainly is the result of active cooperation and unsparing support of the member institutions throughout these years.

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All banks have achieved nearly 103 per cent or BDT 159.78 billion of their annual agriculture loan-disbursement target, which has been fixed at BDT 155.50 billion in total for the FY 15.
A total of 3.194 million farmers received agriculture and rural credit in the immediate past fiscal year.
Of them, 2.543 million were small and marginal farmers who got BDT 112.03 billion or 70 per cent of the total loans, while 2,56,000 sharecroppers got BDT 9.14 billion and 2,66,000 women received BDT 9.01 billion.
BB Deputy Governor SK Sur Chowdhury advised the banks to take necessary measures to develop marketing channel for ensuring fair prices of farm produce.
He also said the banks must disburse the agriculture loans within the shortest possible time without any hassle to farmers.
The deputy governor also drew attention regarding increased agricultural production following disbursement of such loans in last two years as agricultural credit contributing a lot in alleviating poverty. “We’re now exporting rice to different countries including Sri Lanka, Nepal and Indonesia.”
Executive Director of the BB Subhankar Saha said the agricultural and rural credit policy and programme is formulated in line with the government policy to achieve self sufficiency in food production in Bangladesh.
General Manager of the Agricultural Credit and Financial Inclusion Department (ACFID) of BB Provash Chandra Mollick mentioned that timely disbursement of agricultural credit is very important as most of the farmers are in subsistence level in the country.
In this regard, he asked the banks to accomplish their agriculture and rural credit program by achieving credit disbursement target according to the BB’s rules and regulation.
Among others, CEOs and MDs of Sonali Bank Limited Pradip Kumar Dutta, BRAC Bank Limited Syed Mahbubur Rahman, Trust Bank Limited Ishtiaque Ahmed Chowdhury, IFIC Bank Limited Shah A Sarwar and Dhaka Bank Limited Niaz Habib also spoke on the occasion.

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The Financial Sector Support Project (FSSP) aims to improve financial market infrastructure, the regulatory and oversight capacity of the Bangladesh Bank, the country’s central bank, and the access to long-term financing for private firms in Bangladesh.
The 2013 Doing Business report identified access to affordable finance among the top four obstacles for doing business in Bangladesh, the statement added.
The project will enable the participating financial institutions to provide long-term financing to manufacturing and export intensive firms.
The availability of long-term financing of up to five years to the private sector, and in particular to the readymade garments, footwear and light engineering sectors will spur competitiveness, investment, and growth.
The financing institutions will lend at commercially determined rates and also offer Shariah-compliant financial products.
“By providing access to long-term finance, the project will help to build a market for long-term lending in Bangladesh. The project will also provide technical assistance for capacity building of the financial institutions and industry associations.” said Shah Nur Quayyum, the Task Team Leader of the Financial Sector Support Project, of the World Bank.
FSSP will help to strengthen Bangladesh Bank’s supervisory and oversight functions to mitigate financial sector risks.
The project will also support strengthening the financial infrastructure, including the payments system, credit reporting systems, and other areas.
The Second National Agricultural Technology Program (NATP II) aims to support some one million poor, small and marginal farmers in 57 districts.
These small-scale farmers will benefit from stronger linkages with research, on-farm demonstrations of improved technologies, training and skills development, agricultural extension services, and co-funding productive assets.
The project aims to increase and diversify agricultural production, and ensure the poor farmers’ access to markets. The project seeks to increase agricultural productivity of crops, livestock and fisheries.
The project will continue the formation of farmers’ groups, 35 percent of which would consist of women.
“The project builds on the lessons learnt and the success of the first NATP project. The World Bank, along with other development partners, has long promoted agricultural technology and its adaptation to farmers in Bangladesh,” said Patrick Verissimo, the Task Team Leader of NATP II, of the World Bank.
“The project would promote an integrated approach to help to achieve food security, adapt to climate change and enhance nutrition through safer and more diversified food,” he said.
The project will improve the country’s agricultural research system through adopting a demand-driven, market-oriented and decentralised approach to agricultural research and strengthening agricultural research institutions.
The credits are from the International Development Association (IDA), the World Bank’s concessional lending arm. They have 38 years to maturity with a 6-year grace period and carry a service charge of 0.75 percent.
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