The government on Thursday announced a major relief for farmers by approving the waiver of agricultural loans of up to Tk10,000 for an individual, including accrued interest.

The waiver is expected to directly benefit around 12 lakh small and marginal farmers, easing their debt burden and boosting productivity across the crop, fisheries and livestock sectors.

Cabinet Secretary Nasimul Gani told reporters after the first Cabinet meeting that the waiver will cover loans taken in the crop, fisheries, and livestock sectors. Data from Bangladesh Bank show that the total interest to be waived amounts to around Tk1,550 crore.

Officials said clearing these outstanding loans will help ease farmers’ financial burdens, boost morale, and increase productivity. The move is also expected to allow farmers to reinvest in quality seeds, modern irrigation systems, and other inputs needed for a more efficient farming season.

The waiver is intended to improve farmers’ credit records, giving them access to low-interest institutional loans and reducing reliance on high-interest informal lending. Officials also said the measure is likely to boost production in crops, fisheries, and livestock, increase domestic output, reduce import dependence, and help curb rural inflation and migration in the short term.

Officials recalled a similar initiative during the 1991–1996 tenure of former prime minister Khaleda Zia, when farm loans of up to Tk5,000 were waived, easing farmers’ hardships and supporting agricultural growth.

This loan waiver marks a significant step in fulfilling the government’s commitment to strengthen social security for small-scale farmers and promote sustainable agricultural development.