The cabinet has approved a plan to waive agricultural loans of up to Tk 10,000, including accrued interest, in a move aimed at easing pressure on small-scale farmers and strengthening rural resilience.
The decision was taken at the first cabinet meeting chaired by Prime Minister Tarique Rahman at the Secretariat on Thursday morning, said Cabinet Secretary Nasimul Gani.
Briefing reporters, Gani said the waiver aligns with the government’s election manifesto and is intended to provide social protection to marginal farmers.
The measure will cover agricultural credit of up to Tk 10,000 taken for crops, fisheries, livestock and other farming activities, along with accumulated interest, he said.
PM Tarique Rahman presides over first cabinet meeting
Data from Bangladesh Bank show that outstanding dues eligible under the scheme, including interest, total about Tk 1,550 crore as of February 25, Gani said, adding, that the loans were disbursed by state-owned commercial banks, specialised banks and private commercial lenders.
The waiver is expected to directly benefit around 1.2 million farmers nationwide once implemented, according to the cabinet secretary.
The initiative comes as policymakers seek to help out vulnerable rural borrowers from mounting repayment pressures and reinforce the agricultural sector, which remains a key pillar of Bangladesh’s economy and employment base.