Farmers forced to take high-interest loans under syndicate pressure: CAB chief

Although Bangladesh Bank has introduced low-interest loan schemes for farmers, only a very small number of them are benefiting from it, alleged Consumers Association of Bangladesh (CAB) President AHM Shafiquzzaman today (19 September).

He said farmers are being forced to borrow money at high interest rates due to the influence of syndicates.

Shafiquzzaman made the allegation while addressing a press conference, titled "CAB's Activity Briefing", at Dhaka Reporters Unity (DRU).

"This year, Tk30,000 crore has been allocated as low-interest loans for farmers. But whether marginal farmers are actually receiving the benefit remains a big question. Large syndicates have emerged around this loan, forcing farmers to borrow at high interest," he said.

He asserted that CAB will work more actively in the coming days to break such syndicates and ensure fair benefits for farmers.

Clarifying CAB's mandate, Shafiquzzaman said, "It is not CAB's responsibility to enforce the law. CAB identifies irregularities and advises relevant authorities, makes policy recommendations, and when necessary, files writ petitions with the High Court in matters of public interest."

Authorities like the National Consumer Rights Protection, BSTI, Bangladesh Food Safety Authority, district commissioners and UNOs exercise administrative powers. CAB only makes recommendations without using administrative authority and will continue to do so, he added.

CAB also unveiled its annual plan at the press conference, vowing to build a more consumer-friendly market system.

The plan includes both online and offline initiatives to raise consumer awareness.