THE decision to waive agricultural loans of up to Tk 10,000, including accrued interest, is a commendable step of new government towards easing burdens of smallholder and marginal farmers. Announced at the first cabinet meeting, the measure promises an immediate relief for aboput 12 lakh cultivators struggling under modest but debilitating debts. For many rural households engaged in farming, fisheries and livestock sectors, even relatively small loans can become overwhelming after crop losses, erratic weather or volatile market. By clearing these liabilities, estimated at around Tk 1,550 crore, the government has not only fulfilled an electoral commitment but also sent out an assuring signal that the welfare of farmers remains, as it ought to be, central to national priorities. Beyond its immediate financial impact, the waiver may help to restore confidence among borrowers, improve their credit standing and enable reinvestment in seeds, irrigation and improved technologies. Such psychological and economic breathing space is vital for revitalising rural production and sustaining momentum in agriculture, which continues to underpin the livelihood for millions and employs roughly 40–42 per cent of the work force.
Yet, while the waiver gives short-term relief, it should be the beginning rather than the culmination of a wider programme of relief and reform in the farming sector. Farmers continue to grapple with deep-seated structural constraints, most notably the persistent inability to secure fair prices for produce, limited access to affordable institutional credit and a chronic shortage of storage facilities that often compels distress sales. Addressing the entrenched challenges will require a comprehensive and coherent policy response. The government would do well to consider predictable price-support arrangements or minimum guarantee mechanisms for key crops, alongside crop insurance, that shield farmers from climate shocks and market volatility. Equally important is the expansion of concessional refinancing windows so that smallholders can access affordable credit without resorting to high-interest informal lenders. Increased public and private investment in rural storage, cold chains and transport infrastructure would reduce post-harvest losses, smooth supply fluctuations and strengthen farmers’ bargaining power on the market. In this context, the proposed farmer’s card stands out as a promising initiative. If implemented with transparency and robust data governance, it could integrate farmers into a technology-enabled support ecosystem linking subsidies, credit, insurance, market information and advisory services.
Short-term relief, necessary though, needs to be accompanied by long-term reforms that enhance resilience and productivity. The government should, therefore, evolve the present initiative into a broader reform agenda that enables farmers to operate profitably and sustainably. With consistent policy direction, transparent governance and sustained investment in resilience, the agricultural sector can move beyond recurring cycles of debt towards a stable foundation that safeguards food production, strengthens rural incomes and national economic stability.
