The government has decided to waive agricultural loans of up to Tk10,000, in line with the BNP’s electoral manifesto pledge.
The decision was taken at a cabinet meeting held on Thursday at the secretariat, chaired by Prime Minister Tarique Rahman, Cabinet Secretary Nasimul Ghani told reporters after the meeting.
He said the government approved the waiver of agricultural loans — along with accrued interest — up to Tk10,000 in the crop, fisheries and livestock sectors.
According to Bangladesh Bank data as of February 25 this year, the total outstanding amount — including interest — owed by farmers to state-owned commercial banks, specialized banks and private commercial banks stands at approximately Tk1,550 crore.
This amount will fall under the waiver scheme, Ghani said, adding that an estimated 1.2 million farmers are expected to benefit directly.
The move aimed to provide social security for poor farmers and strengthen the agricultural sector, he said.
Ghani noted that funds previously spent on loan instalments could now be invested in improved seeds or modern irrigation technologies, enabling farmers to begin the next cultivation season with renewed confidence.
He added that the waiver is also expected to improve farmers’ credit records, allowing them to access low-interest agricultural loans from banks in the future and reduce reliance on high-interest informal lenders.
Easing the debt burden may encourage greater participation in crop farming, fisheries and livestock activities, potentially increasing national agricultural output and reducing dependence on imports, he said.
The government also anticipates that the decision may help reduce rural-to-urban migration and ease rural inflation.
Officials recalled that during the 1991–1996 tenure of former prime minister Khaleda Zia, agricultural loans of up to Tk5,000 were waived, which helped ease farmers’ hardships and contributed to increased agricultural production.