12 lakh farmers get relief as govt waives agri loans up to Tk10,000 with interest
The waiver will apply to loans taken in the crop, fisheries and livestock sectors
The Cabinet, at its first meeting today (26 February), approved a proposal to waive agricultural loans of up to Tk10,000, including accrued interest, in line with the government's Election Manifesto 2026.
Briefing reporters after the meeting, Cabinet Secretary Nasimul Gani said the waiver will apply to loans taken in the crop, fisheries and livestock sectors.
He added that the decision aims to strengthen social security for small and marginal farmers and reinforce the agriculture sector, considered the backbone of the economy.
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Data from Bangladesh Bank show that as of 25 February, the total outstanding amount with interest to be waived stands at approximately Tk1,550 crore.
The government estimates that around 12 lakh farmers will benefit directly from this initiative.
Officials say the waiver will free small and marginal farmers from debt, boost their morale, and productivity.
The move is designed to allow farmers to reinvest the funds towards quality seeds and modern irrigation technologies, facilitating a more efficient farming season.
The press brief noted that the waiver would improve farmers' credit records, allowing them to access fresh low-interest institutional loans and reducing reliance on high-interest informal lending.
The government expects the move to boost crop, fisheries and livestock production, raise output and cut import dependence, while helping curb rural-to-urban migration and ease rural inflation in the short term.
The brief recalled that during the 1991-1996 tenure of former prime minister Khaleda Zia, farm loans of up to Tk5,000, including principal and interest, were waived, easing farmers' hardships and supporting agricultural growth.
