Government waives farm loans up to Tk 10,000 including interest

Around 1.2 million small and marginal farmers are expected to benefit directly from this move, cabinet secretary says

The government has approved a proposal to write off agricultural loans of up to Tk 10,000, including interest, for crops, fisheries, and livestock sectors.

The decision was finalised during the first cabinet meeting chaired by Prime Minister Tarique Rahman at the Secretariat on Thursday.

Cabinet Secretary Nasimul Ghani told reporters that farmers’ loans taken until Wednesday, amounting to Tk 15.5 billion with interest, will fall under this waiver.

Around 1.2 million small and marginal farmers are expected to benefit directly from this decision.

"Free from the burden of debt, farmers can now focus on production and invest the money previously meant for instalments into high-yield seeds and modern irrigation," Ghani said.

The government expects the move to improve farmers' credit records, allowing them to access low-interest bank loans in the future and reducing their dependence on loan sharks.

The Cabinet secretary added that easing the debt could also help curb rural-to-urban migration and lower rural inflation.

A similar initiative was previously undertaken by the BNP government during its 1991-1996 tenure, when it waived agricultural loans and interest up to Tk 5,000.