Loan waiver lifts debt burden on 14.34 lakh farmers

The government's decision to waive agricultural loans of up to Tk 10,000, including accrued interest, has brought relief to more than 14 lakh marginal farmers across the country, easing their debt burden and opening the way for fresh bank credit.

The BNP-led government has paid Tk 1,352.74 crore to banks to settle the outstanding principal and interest of 14,34,482 farmers, freeing them from default-related barriers to accessing formal credit.

The initiative, part of the government's electoral pledges and farmer-friendly policies, is expected to give fresh momentum to rural economic activities and reduce farmers' dependence on informal moneylenders.

Under the programme, both principal and accrued interest were fully waived for eligible farmers who had taken loans of up to Tk 10,000, irrespective of the amount they had defaulted on.

Prominent economist Prof Abu Ahmed described the decision as a major relief for marginal farmers, saying it could have a significant positive impact on the rural economy.

"To make farmers sustainably self-reliant, top priority should be given to reducing production costs, ensuring agricultural inputs, and providing targeted subsidies," he told BSS.

He said supporting farmers would help increase domestic agricultural production, strengthen food security and contribute to the broader economy.

Prof Abu Ahmed cautioned that depending on food imports during global market crises could prove costly, as major exporting countries such as Vietnam and Thailand tend to raise prices during shortages. He said greater emphasis should therefore be placed on domestic production, adding that farmers with larger loans might also need further support.�" BSS