Govt Waives Farm Loans Up to Tk10,000 for 12 Lakh Farmers

The Cabinet has approved a proposal to waive agricultural loans of up to Tk10,000, including accumulated interest, benefiting around 12 lakh small and marginal farmers.

Cabinet Secretary Nasimul Gani said the decision, taken at the Cabinet’s meeting on Wednesday, covers loans taken in the crop, fisheries and livestock sectors and aims to strengthen social protection for vulnerable farmers while supporting the agriculture sector.

According to data from Bangladesh Bank, the total outstanding amount to be written off, including interest, stands at about Tk1,550 crore.

Officials said the initiative is intended to free farmers from the burden of small debts, boost morale and productivity, and enable them to invest in quality seeds, fertilisers and modern irrigation systems for the upcoming farming season.

The waiver is also expected to improve borrowers’ credit records, making it easier for them to access fresh institutional loans at lower interest rates and reducing dependence on informal high-interest lending.

Authorities believe the move will help increase production in agriculture, fisheries and livestock, reduce import reliance, and ease short-term rural inflation. It may also slow migration from rural areas to cities by improving farm incomes.

A similar loan waiver programme in the early 1990s had provided relief to farmers and supported agricultural growth, officials noted.