Daijiworld Media Network - Chennai
Chennai, Jun 16: Responding to persistent appeals from farmers’ associations and political parties, Tamil Nadu Chief Minister C. Joseph Vijay on Tuesday announced a significant expansion of the state's crop loan waiver programme, increasing the eligible waiver limit from Rs 50,000 to Rs 75,000 for loans obtained through cooperative banks.
The move comes just weeks after the state government introduced a scheme that provided complete loan waivers for small and marginal farmers with crop loans of up to Rs 50,000. However, several farming bodies argued that many cultivators with larger borrowings had been excluded and demanded broader coverage.
Taking these concerns into account, the government held an extensive review meeting at the Secretariat on Monday under the chairmanship of the Chief Minister. Senior ministers and officials from the Agriculture, Cooperation, Finance, Planning and Development departments participated in the discussions.
Following the review, the government approved an enhanced relief package that extends full waiver benefits to crop loans of up to Rs 75,000 availed through cooperative banks between May 1, 2025, and February 28, 2026.
The government has also introduced support for farmers whose outstanding crop loans exceed Rs 75,000. Under the revised policy, these borrowers will receive financial assistance of Rs 35,000 each, allowing a larger section of the farming community to benefit from the initiative.
Official estimates indicate that the expanded package will benefit nearly 14.43 lakh farmers across the state and require an additional expenditure of Rs 5,932.23 crore.
Of the total beneficiaries, around 8.33 lakh marginal farmers are expected to receive assistance worth Rs 3,599.67 crore, while 5.16 lakh small farmers will benefit from relief amounting to Rs 1,995.42 crore. Another 93,548 farmers belonging to other categories will receive support valued at Rs 337.15 crore.
Government officials said the revised scheme was prepared after examining farmers’ demands and taking into account the Reserve Bank of India’s guidelines governing government-backed loan waiver programmes.
The Chief Minister has directed officials to implement the enhanced scheme at the earliest so that eligible farmers can obtain fresh institutional credit and begin preparations for the forthcoming cultivation season without financial burdens.