A Daily Star (Bangladesh) article highlights findings from studies presented at a workshop organized by the Bangladesh Institute of Development Studies (BIDS) and the International Food Policy Research Institute (IFPRI), showing that rural household debt in Bangladesh is increasing, particularly among the poorest families. According to a BIDS study, 79% of the poorest households now spend more than 40% of their income repaying loans, up from 49% in 2010, raising concerns about growing indebtedness and debt cycles among rural borrowers.
Among other research findings presented during the workshop, the article also features an IFPRI study on agricultural mechanization finance, which found that banks play only a limited role in financing farm machinery purchases. Instead, farmers often rely on relatives, microfinance institutions, dealers, and informal lenders. Researchers recommend machinery-backed loans, seasonal repayment schedules, and longer-term financing options to ease financial pressures on machinery owners. The article further mentions an IFPRI-WeGro study exploring profit-sharing models for livestock investment, which could help farmers manage risk while expanding production. Read the article
Related reading:
Combine harvester subsidies and agricultural mechanization in Bangladesh: Recommendations for reform (IFPRI Policy Note, 2025)
Bridging the smallholder finance gap: Collaborative research with WeGro in Bangladesh (IFPRI Blog, 2023)