The government has announced a loan waiver that clears debts of up to Tk 10,000 for about 12 lakh farmers, a move aimed at easing financial pressure on small and marginal growers and helping them restart productive work. The decision was taken at a cabinet meeting chaired by the prime minister and applies to loans in grain, crop, fisheries and livestock, covering both the principal amount up to Tk 10,000 and any accrued interest so that many low-income producers will see immediate relief. Officials say the measure will free money that families would otherwise use to pay installments, and this cash can now be spent on better seeds, fuel for irrigation, quality feed for animals, or small tools that raise output. By removing small debts, the policy is expected to improve farmers’ credit records, making it easier for them to access new loans from formal banks instead of costly local moneylenders. With less debt pressure, farmers will be more confident to plant on time, maintain ponds and livestock, and invest in modest training or equipment that improve yields. The cabinet secretary noted that easing debt stress can also help reduce rural-to-urban migration because steadier farm income helps households meet food and basic needs. Bank data show that, as of late February, farmers owed about Tk 1,550 crore to public and private banks, including interest, so the waiver targets the smallest, most burdensome balances while larger loans remain in place. Local leaders and farmer groups welcomed the news, saying the waiver could bring quick gains for daily life and for planting plans. Traders and suppliers said clearer farm finances help the whole rural chain, since on-time purchases of seeds and feed keep shops, transporters and packers busy. Officials also linked the plan to goals of raising food production, lowering imports and strengthening rural markets, and they said pilot programs will show how waived borrowers can be supported to use funds productively. The move blends social support with economic sense: targeted relief can lift a farmer out of a debt cycle and let them resume work, raising harvests and income over time. Success will depend on quick implementation, fast updating of bank records, and follow-up steps such as low-cost credit, training and market access so farmers turn short-term relief into lasting gains for families and towns. The waiver is meant to give immediate breathing room, encourage smart farm investment and help small farms build steadier futures in the countryside. Observers say the waiver may boost jobs in related services like transport, packing and supply of seeds and feed, and could encourage young people and women to stay in farming if it is paired with training, better storage and easier access to markets.
