Govt waives Tk 10,000 loan each for 1.2m farmers

At a peasant-relief direction from the new Prime Minister, the government has decided to waive agricultural loans of up to Tk 10,000, along with accrued interest, benefiting 1.2 million smallholder farmers across Bangladesh.
The decision was made at a cabinet meeting held Thursday at the Bangladesh Secretariat with Prime Minister Tarique Rahman in the chair.
Briefing reporters after the meeting was over, Cabinet Secretary Nasimul Ghani said the waiver will apply to loans taken in grain, crop, fisheries and livestock subsectors of agriculture, in line with the government's election manifesto.
He said 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.
According to the Cabinet Secretary, around 1.2 million farmers will directly benefit from the decision. Both the principal amount-up to Tk 10,000-and the full accrued interest thereon will be waived.
Explaining the government objective he said the move will relieve small and marginal farmers of debt burdens, encouraging them to invest more actively in agricultural production.
"The money that farmers would have spent on loan installments can now be used to purchase quality seeds or adopt modern irrigation technologies," he said, adding that the absence of debt pressure would allow farmers to begin the next cultivation season with renewed enthusiasm.
The exemption is also expected to improve farmers' credit records and creditworthiness, enabling them to access fresh agricultural credits from banks at lower interest rates and reduce reliance on high-interest loans from local moneylenders.
Officials believe the debt relief will encourage greater engagement in crop production, fisheries and livestock, ultimately boosting national agricultural output and lowering dependence on imports.
According to Bangladesh Bank, as of February 25, farmers owed approximately Tk 1,550 crore (Tk 15.5 billion) including interest, to public commercial banks, specialised banks and private commercial banks, reports BSS.