Agri loan waiver a timely move

The government's recent decision to waive agricultural loans of up to Tk 10,000, including interest, in the crops, fisheries, and animal husbandry sectors is a timely and commendable initiative. Under this decision, loans amounting to Tk 1,550 crore will be written off, directly benefiting approximately 1.2 million farmers across the country.

This decision, taken at the first formal meeting of the new cabinet chaired by Prime Minister Tarique Rahman, reflects the government's commitment to fulfilling its election pledge. By relieving small and marginal farmers of their debt burden, the government has provided them with an opportunity to restart their agricultural activities with renewed confidence and enthusiasm.

For many struggling farmers, even a relatively small loan can become a heavy burden due to accumulated interest.

Waiving both the principal and interest will not only offer immediate financial relief but also improve their credit records, enabling them to access formal banking loans in the future at lower interest rates. This will reduce their dependence on high-interest loans from local moneylenders.

Freed from the pressure of loan repayments, farmers can invest in quality seeds, modern irrigation systems, and improved farming techniques. Such reinvestment will likely enhance productivity and contribute to strengthening the country's agricultural backbone. Moreover, the humanitarian dimension of this decision cannot be overlooked. Marginalised families will now be able to allocate more resources to their children's education and healthcare.

Mohibul Hasan Rafi

Government City College, Chattogram

mohibulhasanrafi809067@gmail.com