Tamil Nadu expands crop loan waiver, raises full relief limit to Rs 75,000

The Tamil Nadu government has significantly expanded its crop loan waiver programme, increasing the threshold for full loan relief from Rs 50,000 to Rs 75,000 for farmers who borrowed through cooperative banks.

Chief Minister C. Joseph Vijay announced the revised scheme on Tuesday, responding to demands from farmers' organisations and political parties that had sought broader coverage for cultivators left out of the original package.

The decision comes less than a month after the state unveiled a waiver scheme covering crop loans of up to Rs 50,000 for small and marginal farmers. The earlier announcement had triggered calls for the inclusion of farmers with larger outstanding borrowings.

Following representations from stakeholders, the government conducted a detailed review of the scheme at a high-level meeting chaired by the Chief Minister. Senior ministers and officials from the Agriculture, Cooperation, Finance, Planning and Development departments participated in the discussions.

Under the revised framework, crop loans obtained through cooperative banks between 1 May 2025, and 28 February 2026 will be fully waived if the outstanding amount does not exceed Rs 75,000.

The government has also extended support to farmers with higher loan liabilities. Borrowers whose crop loans exceed Rs 75,000 will receive financial assistance of Rs 35,000 each, broadening the reach of the relief package.

According to official estimates, the expanded programme will benefit around 14.43 lakh farmers across the state and involve an additional financial commitment of Rs 5,932.23 crore.

Of the total beneficiaries, approximately 8.33 lakh marginal farmers are expected to receive relief worth Rs 3,599.67 crore, while 5.16 lakh small farmers will benefit from assistance amounting to Rs 1,995.42 crore. A further 93,548 farmers in other categories will receive support valued at Rs 337.15 crore.

Officials said the revised scheme was formulated after considering farmers' demands and adhering to the Reserve Bank of India's guidelines governing government-sponsored loan waiver programmes.

The Chief Minister has directed departments concerned to implement the enhanced package at the earliest, enabling eligible farmers to regain access to institutional credit and prepare for the upcoming cultivation season without financial stress.

The move is expected to provide a significant boost to the agricultural sector while easing the debt burden on thousands of farming households across Tamil Nadu.

With IANS inputs