Dhaka: At the instruction of the Prime Minister, the government has decided to waive agricultural loans of up to Tk 10,000, including accrued interest, benefiting 12 lakh farmers across the country. The decision was taken at a cabinet meeting held today at the Bangladesh Secretariat, chaired by Prime Minister Tarique Rahman.
According to Bangladesh Sangbad Sangstha, the waiver will apply to loans taken in the grain, crop, fisheries, and livestock sectors, in line with the government's election manifesto. The main objective of the initiative is to ensure social security for poor and marginal farmers and strengthen the backbone of the country's agricultural sector.
The Cabinet Secretary, Nasimul Ghani, stated that around 12 lakh farmers will directly benefit from the decision. Both the principal amount up to Tk 10,000 and the full accrued interest on such loans will be waived. The move aims to relieve small and marginal farmers of debt burdens, encouraging them to invest more actively in agricultural production.
Farmers will now have the opportunity to use the money that would have been spent on loan installments to purchase quality seeds or adopt modern irrigation technologies. The absence of debt pressure is expected to allow farmers to begin the next cultivation season with renewed enthusiasm.
The waiver is also expected to improve farmers' credit records and creditworthiness, enabling them to access fresh agricultural loans from banks at lower interest rates and reduce reliance on high-interest loans from local moneylenders. Officials believe the reduced debt burden will encourage greater engagement in crop production, fisheries, and livestock, ultimately boosting national agricultural output and lowering dependence on imports.
The Cabinet Secretary noted that the immediate impact of the loan waiver could include reduced rural-to-urban migration and easing rural inflationary pressures. According to Bangladesh Bank, as of February 25, farmers owed approximately Tk 1,550 crore, including interest, to public commercial banks, specialised banks, and private commercial banks.