In a sweeping relief measure for the country's small and marginal farmers, the government has decided to waive agricultural loans of up to Tk 10,000 - along with all accrued interest - benefiting an estimated 1.2 million farmers nationwide and clearing nearly Tk 1,550 crore in outstanding dues.
The landmark decision was approved at a Cabinet meeting on Thursday at the Bangladesh Secretariat, with Prime Minister Tarique Rahman in the chair.
Briefing reporters afterwards, Cabinet Secretary Nasimul Ghani said the waiver fulfills a key commitment in the government's election manifesto and is designed to strengthen social security for poor and marginal farmers while revitalising the agricultural sector.
The relief package will apply to loans taken in the grain, crop, fisheries, and livestock sectors. Both the principal amount - up to Tk 10,000 - and the full accumulated interest will be written off under the scheme.
According to Bangladesh Bank data as of February 25, farmers owed approximately Tk 1,550 crore, including interest, to public commercial banks, specialised banks, and private commercial banks. The entire amount falls within the scope of the waiver.
Officials estimate that around 12 lakh farmers will directly benefit from the initiative. By lifting the debt burden, the government hopes to free up resources for farmers to invest in quality seeds, modern irrigation technologies, fertilisers, and other productivity-enhancing inputs.
Nasimul Ghani said that removing the pressure of overdue loans would allow farmers to enter the next cultivation season with renewed confidence and momentum. The waiver is also expected to improve farmers' credit records and creditworthiness, enabling them to access fresh agricultural loans at lower interest rates and reducing their reliance on high-interest borrowing from informal moneylenders.
Authorities believe the measure will encourage greater participation in crop cultivation, fisheries, and livestock production - boosting overall agricultural output and helping reduce dependence on imports.
The Cabinet Secretary further noted that the immediate ripple effects could include slowing rural-to-urban migration and easing inflationary pressures in rural economies.
Recalling past precedent, officials pointed out that during the 1991-1996 tenure of former Prime Minister Khaleda Zia - mother of Prime Minister Tarique Rahman - agricultural loans of up to Tk 5,000 were similarly waived, a move widely credited with easing rural hardship and stimulating farm production.
The latest decision marks a bold policy step aimed at reinforcing the agricultural backbone of the nation and delivering tangible financial relief to millions of grassroots farmers, Nasimul Ghani said.
