KGF Programme

Kuwait Goodwill Fund for Promotion of Food Security in Islamic Countries Program
(KGF Program)


In view of Bangladesh Government’s expression of special interest, Kuwait Fund for Arab Economic Development (KFAED), under its program known as Kuwait Goodwill Fund for Promotion of Food Security in Islamic Countries (in short, Kuwait Goodwill Fund or KGF) provided a grant of US$ 10 million for the purpose of funding Microcredit and Small loan for farming and small business activities in the areas of food production and provision of related supporting services, including, without being limited to, food processing, storage and marketing. A tri-partite grant agreement was signed among the Government of Bangladesh, KFAED and Palli Karma-Sahayak Foundation (PKSF) on January 30, 2011. The overall goal of the program is to raise household income, reduce vulnerability, improve food security and provide technical assistance to the targeted population.

Program Objectives

  • To provide demand-driven and appropriately timed loan to the people involved in farming, small business and micro enterprises;
  • To provide assistance to the acquisition of knowledge in modern and sustainable technologies, to adopt and practice these technologies to enhance production to ensure food security;
  • To create employment opportunities at the grass root level.

Features of KGF Program:

  • Credit assistance is made available in favor of food production, processing, storing and marketing of agricultural products and by-products and in small business and micro enterprises.
  • A maximum amount of BDT 3,00,000 in the form of Microcredit and BDT 3,00,001 to 15,00,000 as Small loan can be approved under this program.
  • Since the members are entitled to use higher ceiling of credit, they are enabled to increase cropping intensity by diversification of crops through extension of agricultural activities. Besides, they can invest their funds in the storage and marketing of crops and expansion of markets.
  • 50% of the service charge income accumulated from the program at PKSF-PO level is used for the training for the beneficiaries, PO and PKSF staff; implementation of demonstration, field days, farmers’ rally, mass gathering, exposure visits etc. and distribution of inputs at farm level.
  • A part of the income from the service charges earned by the POs at PO-Member level is also be used for the capacity building of the members and other technical assistance.
  • As a part of technical assistance, a part of service charge income is also being used for climate resilient livelihood innovation for climatically vulnerable community.
  • The members enjoy flexible loan repayment facilities in the implementation of various income-generating activities with a seasonal cash flow. Such facilities include the repayments after an extended grace period with weekly/fortnightly/monthly/quarterly or one-time and balloon terms.

Performance of the Program

i) Credit Assistance

Since the inception of the KGF Programme, a total of 5,22,135 members of which 81.06% are female, have been organized in 13,932 groups. Savings of the beneficiaries under this programme stood BDT 295 million in the field. Up to July 2018, 35 POs has disbursed BDT 1333 million to nearly 522 thousand (cumulative) member. Current loan outstanding is nearly BDT 1526 million having a recovery rate of over 99%. Nearly 64% of this laoan is used in crop cultivation, 26% in livestock production and rest in fish and other farm-related activities.

ii) Capacity Building and Technical Assistance

a) Farmer (member) training: Nearly 74,500 farmers (members) have been trained on new technologies related to crop production, livestock rearing and fish production. These training were conducted with the help of central and local level resource persons from Department of Agricultural Extension (DAE), Department of Livestock (DLS) and Department of Fisheries (DOF). Specialized training (4-5 days long, residential) on Modern Livestock Rearing, Modern Fish Production and Management, Vegetative Propagation and Fruit Tree Management, Mango Orchard Management and Judicious Use of Pesticide to Control Manage Pest and Diseases were also arranged for 975 progressive members in different research and educational organizations.

b) Staff training: Over 3,300 PO level officers have been trained on Implementation strategy of KGF Programme and Basic Agriculture and Technology Update. Besides, 260 PO level technical officers were trained on Modern Fish Cultivation and Management, Integrated Pest Management and Organic Fertilizer Management, Summer Tomato, Onion and Country bean Production Technology and Modern Rice Production Technology in the Horticultue Center of Department of Agricultural Extension (DAE), Bangaldeh Fisheries Research Institute (FRI), Bangladesh Agicultural Research Institute (BARI), Bangladesh Rice Research Institute (BRRI) and Bangalsdeh Agricultural University (BAU), respectively.

c) Technology dissemination: KGF has set 3,135 demonstrations (799 result demonstration, 842 block demonstration and 1494 method demonstration) using area specific, locally adopted, environment-friendly, appropriate, sustainable and inexpensive technologies at farmers’ field. Besides, 286 field days and 68 exposure visits to successful technologically dessimination farm and 22 mobile cinema shows at field level were arranged under the programme.

d) Input/mechanization support: KGF Programme has distributed 42,500 pheromone traps and 29,350 lures for insecticide free vegetables production and 775 porous pipes for irrigation water saving rice production. Besides, 576 USG applicator and 280 power sprayers were also distributed for easy and effective application of USG to rice field and judicial use of pesticide to produce quality mango respectively from this programme.

iii) Suitable agricultural technologies implemented under KGF Programme

  • Production and post-harvest management of mango variety Gouromoti and Malta uner two storied orchard system- 129 mango and 494 malta sapling has been planted in the orchard and a quality nursery has been established to raise quality saplings of Gouromoti mango and malta
  • Dairy cluster development and milk processing for safe Mozzarella cheese production- members are producing whey at required temperature of pasteurization so quality of cheese has been improved
  • Integrated agricultural production and market linkage services- using cocodust 5,89,500 quality vegetable seedlings have been raised and members earned Tk. 7,80,000/- by selling 4,90,000 seedlings
  • Pumpkin and other suitable crop production on sandbars- each of 120 members produced 120-160 pumpkin in an average and earned Tk. 3,000/- from the intervention
  • Semi-intensive native chicken rearing for small scale commercial production- 500 farm families are implementing this technology successfully as a result mortality rate of chicks drop-down to 10% from 80%
  • Alternative income generating activities of dyke dwellers through floating cage fish culture- dyke dwellers are producing mono-sex tilapia using 50 cages and able to earn more 25-30% than mono culture
  • Best quality betel leaf production for income and employment gerneration- shed net preparation has been completed and planting is in progress

Activities undertaken for the FY 2017-18
For the FY 2018-19, a budgetary allocation of BDT 168.6 crore (165 crore for credit assistance and 3.6 crore for capacity building activities) has been made for a total of 35 Partner organizations (PO) under this programme. The working area of this programme covers 73 upazilas of 31 districts of Bangladesh. In the 2018-19 fiscal year a diversified work plan has been made under this programme. Major activities under this programme are-

  • Cluster based approaches have been undertaken to disseminate low-cost sustainable technologies through establishing demonstrations at farmers field;
  • Introducing high yielding and stress tolerant/resistant crop varieties of high value crop such as- spices, oilseed, pulses, fuits and flowers;
  • Introducing integrated crop management practices including mechanical, cultural and biological control of pest and disease management for safe vegetables production;
  • Introducing cluster based vermi-compost, semi intensive goat rearing and mixed aquaculture along with dyke vegetable cultivation;
  • Developing technology related knowledge, skill and practices for both staff and members by arranging training, workshop, exposure visits at different agricultural research and educational organizations; and
  • Arranging field days for effective extension of proven technologies of the best practices established by the farmers at different demonstration sites.