KARACHI, April 11: The State Bank has asked heads of the banks to ensure disbursement of agricultural loans to needy farmers and flour millers for construction of wheat godowns and silos.

In a letter addressed to the heads of five major local banks; local private banks and chairman and managing director of Agricultural Development Bank of Pakistan and Federal Bank for Co-operatives, the SBP has asked them to look into the complaints of farmers and flour millers in this regard.

“It has been reported by various quarters i.e. farmers association, chambers of agriculture, associations of flour mills that the banks are not found serious in the disbursement of agricultural loans for construction of wheat godowns/silos as yet,” says the letter.

“Such attitude on the part of the banks has been viewed as a great concern by the State Bank due to national cause and the same is not reflecting healthy symptom for marketing/procurement of wheat crop rendering financial loss to the growers/flour mills in the form of lower prices of their agricultural produce,” the letter adds. It reminds all the banks that the central bank has already issued a circular in January this year asking them to start offering farm credit for the construction of wheat godowns and silos.

The circular was issued after the government had allowed the private sector to procure wheat from the growers and to export them.