Blitz Bureau
NEW DELHI: Yielding to demands from farmers’ organisations and political parties, Tamil Nadu Chief Minister C Joseph Vijay on June 16 announced a major expansion of the state’s crop loan waiver scheme, extending full relief to crop loans up to Rs 75,000 availed through cooperative banks by small, marginal, and other farmers.
The decision comes barely three weeks after the government unveiled a crop loan waiver programme covering loans up to Rs 50,000 obtained by small and marginal farmers.
Following the announcement, several farmers’ groups and political parties had urged the government to broaden the scope of the scheme, arguing that a large number of cultivators with higher borrowings remained outside its ambit.
Acting on these representations, the government conducted a detailed review of the scheme at a high-level meeting chaired by the Chief Minister at the Secretariat on June15. Ministers and senior oႈcials from the Agriculture, Cooperation, Finance, Planning and Development departments participated in the deliberations. Based on the review, the government decided to increase the waiver limit from Rs 50,000 to Rs 75,000.
Under the revised package, crop loans obtained through cooperative banks between May 1, 2025 and February 28, 2026, will be fully waived if the outstanding amount is up to Rs 75,000.
The government has also announced relief for farmers whose crop loans exceed Rs 75,000. Such borrowers will receive ¿nancial assistance of Rs 35,000 each, ensuring that a wider section of the farming community bene¿ts from the scheme.
According to oႈcial estimates, the enhanced crop loan waiver package will bene¿t 14.43 lakh farmers across Tamil Nadu and involve an additional expenditure of Rs 5,932.23 crore.
The government said 8.33 lakh marginal farmers would receive waivers and relief worth Rs 3,599.67 crore, while 5.16 lakh small farmers would bene¿t to the tune of Rs 1,995.42 crore. Another 93,548 farmers classi¿ed under other categories would receive assistance amounting to Rs 337.15 crore.
RBI guidelines
Oႈcials said the revised scheme was formulated after considering farmers’ demands and the operational guidelines issued by the Reserve Bank of India for governmentsponsored loan waiver programmes. The Chief Minister directed oႈcials to implement the expanded scheme without delay so that eligible farmers can access fresh institutional credit and prepare for the upcoming cultivation season without ¿nancial constraints.
