The proposed national budget for fiscal year 2026–27 has earmarked funds for a government initiative to waive agricultural loans of up to Tk 10,000.
Finance Minister Amir Khusru Mahmud Chowdhury announced the allocation while presenting the proposed budget in the second session of the 13th National Parliament on Thursday.
The provision has been made under the agriculture and food security sector to facilitate the implementation of the loan waiver programme.
The decision follows a cabinet approval on February 26 to waive, including accrued interest, agricultural loans of up to Tk 10,000 in the crop, fisheries and livestock sectors. The programme is expected to write off approximately Tk 1,550 crore in outstanding loans and benefit around 12 lakh farmers.
Following the cabinet meeting, the cabinet secretary said that, according to Bangladesh Bank data, farmers owed nearly Tk 1,550 crore, including interest, to state-owned commercial banks, specialised banks and private commercial banks as of February 26. The entire amount is set to be covered under the waiver scheme.
The government expects the initiative to ease the debt burden on small and marginal farmers, enabling them to reinvest in agricultural activities and boost production.
The proposed budget also includes Tk 2,749.10 crore for enhancing crop production and productivity, Tk 849.48 crore for seed production, preservation and distribution, Tk 60.52 crore for expanding agricultural marketing and processing facilities, and Tk 700 crore for fertiliser, seed and grant support under agricultural rehabilitation programmes.