Cabinet decides to waive agricultural loans up to Tk 10,000 with interest

The new government has decided to waive agricultural loans of up to Tk 10,000, including interest, in the crop, fisheries and livestock sectors.

As a result of the decision, around Tk 15.5 billion will come under the waiver scheme, benefiting approximately 1.2 million farmers.

The decision was taken at the first formal meeting of the new cabinet, held at the secretariat today, Thursday morning and chaired by Prime Minister Tarique Rahman.

Cabinet Secretary Nasimul Gani later announced the decision at a press conference in the afternoon.

Responding to questions from journalists, the cabinet secretary said that regardless of the amount of interest accrued on loans of up to Tk 10,000, the entire amount, principal and interest, would be waived.

In a written statement, he said the government has taken the decision to waive agricultural loans of up to Tk 10,000, including interest in line with its election manifesto.

The primary objective is to ensure social protection for poor farmers and to strengthen the agricultural sector.

According to data from Bangladesh Bank, as of today (26 February), farmers owe approximately Tk 15.5 billion, including interest, to state-owned commercial and specialised banks as well as private commercial banks. This amount will be covered under the waiver scheme.

An estimated 1.2 million farmers will directly benefit from the move. The waiver will free small and marginal farmers from debt burdens, increasing their motivation and supporting higher agricultural production nationwide.

The cabinet secretary said that the money previously spent on loan instalments could now be invested in improved seeds or modern irrigation technologies. With the burden of debt lifted, farmers will be able to begin the next cultivation season with renewed energy.

He added that the waiver would also improve farmers’ credit records, enabling them to access low-interest agricultural loans from banks in the future and reducing their reliance on high-interest informal moneylenders.

The cabinet secretary further said that reducing debt burdens would encourage greater participation in crop production, fisheries and livestock farming, leading to increased national agricultural output and lower import dependency. As an immediate effect, rural-to-urban migration would decline and rural inflation would ease.

He also noted that during the 1991-1996 tenure of former Prime Minister Begum Khaleda Zia, agricultural loans of up to Tk 5,000, including interest, were waived — a measure that had helped ease farmers’ hardships and contributed to increased agricultural production.