Dhaka:Marginal farmers across Bangladesh are experiencing significant relief following the BNP-led government's decision to waive agricultural loans along with interest. The initiative benefits 14,34,482 farmers and is expected to invigorate the rural economy.
According to Bangladesh Sangbad Sangstha, the government has paid a total of Tk 1,352.74 crore, covering both principal and interest, directly to banks. This measure is intended to free farmers from debt burdens and facilitate access to fresh bank credit.
Economists and experts view the initiative as a crucial step in breaking the hold of high-interest informal moneylenders and integrating farmers into the formal banking system. The program, a part of the government's electoral promises, completely waives both principal and accrued interest for loans up to Tk 10,000, regardless of the defaulted amount.
Prominent economist Prof Abu Ahmed commended the move, highlighting its potential to positively impact the rural economy and national food security. He emphasized the importance of supporting farmers to boost domestic yields and reduce reliance on food imports, especially during global market crises.
Farmers from various regions have expressed their relief. Faruqe Hossain from Narangali village and Md Mohiuddin from Jhaudia village shared how the waiver lifted significant financial burdens, allowing them to avoid selling personal assets.
Bangladesh Krishi Bank waived Tk 604.81 crore for 709,679 farmers, while other banks waived nearly Tk 747.93 crore for an additional 724,803 farmers. The process was streamlined to ensure farmers faced no bureaucratic challenges.
Preliminary estimates by the Bangladesh Bureau of Statistics indicate that agriculture contributed 11.85 percent to the GDP in the 2025-2026 fiscal year. To boost GDP growth and control inflation, Bangladesh Bank increased the agriculture and rural credit target to 4 percent of banks' net loans for the 2026-2027 fiscal year, aiming for Tk 60,000 crore.
The government’s direct reimbursement to banks is expected to address liquidity shortages, stimulate credit flow, and revitalize rural economic activities.