Finance Minister Amir Khosru Mahmud Chowdhury on Monday said the government has taken initiatives to support farmers by waiving small agricultural loans and continuing low-interest agricultural credit facilities.

He said this in Parliament in reply to a starred question from ruling party MP from Bogura-4 Md Mosharraf Hossain.

The minister said the government has not taken any step to provide interest-free loans to farmers. However, a decision has been taken to waive agricultural loans up to Tk 10,000, including interest.

He said the government has already allocated Tk 1,567.96 crore in the budget to implement the decision, which will benefit around 13,17,500 farmers across the country.

Khosru also said the Bangladesh Bank, through its annual Agricultural and Rural Credit Policy and Programme, is providing agricultural and rural loans on easy terms and at comparatively low interest rates. For the fiscal year 2025-26, a target to disburse Tk 39,000 crore as agricultural and rural credit has been set.

He said the central bank launched a special refinance scheme of Tk 1,000 crore on August 25, 2022 to increase wheat and maize production.

The programme will remain valid until June 30, 2027 and farmers are receiving loans under the scheme at a 4% interest rate.

In addition, loans are being provided at a concessional interest rate of 4% for import-substitute crops such as pulses, oilseeds, maize and spices, with the government providing interest subsidies to banks through Bangladesh Bank.

The measures are aimed at strengthening agricultural production and ensuring financial support for farmers across the country.