The government announced the waiver of agricultural loans up to BDT 10,000 for 12 lakh farmers across the nation.

The decision was formalized during a cabinet meeting held on Thursday at the Bangladesh Secretariat, presided over by Prime Minister Tarique Rahman. Cabinet Secretary Nasimul Ghani, briefing reporters after the session, confirmed that the instruction came directly from the Prime Minister.

The waiver covers the principal amount and all accrued interest for loans in the grain, crop, fisheries, and livestock sectors. This initiative aligns with the government’s election manifesto, specifically targeting social security for poor and marginal farmers.

"The main objective of the initiative is to ensure social security for poor and marginal farmers and strengthen the backbone of the country’s agricultural sector," Ghani stated.

He noted that by removing the debt burden, the government hopes to empower farmers to reinvest their savings into quality seeds and modern irrigation technologies rather than loan installments.

The policy is expected to have a far-reaching economic impact. By clearing their debt records, 12 lakh farmers will regain their creditworthiness, allowing them to access fresh bank loans at lower interest rates and reducing their dependence on high-interest local moneylenders.

Officials believe this will lead to increased national agricultural output and a decrease in food imports.

Data from Bangladesh Bank indicates that as of February 25, the total outstanding debt for these small-scale loans—including interest—amounted to approximately BDT 1,550 crore across public, private, and specialized commercial banks.

Beyond the immediate financial relief, the Cabinet Secretary emphasized that the move is likely to curb rural-to-urban migration and help ease inflationary pressures in rural areas.