Tamil Nadu Chief Minister C Joseph Vijay on Tuesday announced a full waiver of crop loans of up to Rs 75,000 availed by farmers through cooperative banks from May 1, 2025, to February 28, 2026.
The waiver would benefit 14.43 lakh farmers across the state and would entail the state government an additional expenditure of Rs 5,932 crore and would ensure a big relief to the ryots, the government said.
Following a review meeting with ministers and senior officials at the Secretariat here, the chief minister said that farmers who had availed loans exceeding Rs 75,000 will receive a waiver of Rs 35,000, a release from the government said.
The announcement follows a representation from the farmers in the wake of the state government announcing a waiver of loans of up to Rs 50,000 last month for small and marginal farmers who availed cooperative bank loans. The new announcement is a revision.
According to the release, as per the Reserve Bank of India's Model Operating Procedures for Government Loan Waiver Schemes, the government should fully disburse the entire amount of crop loan waiver within 45 to 60 days.
"Considering the current financial position and financial resources of the state government, in this difficult situation, the chief minister has ordered a waiver of approximately Rs 6,000 crore to 14.43 lakh farmers who have availed crop loans from May 1, 2025, to February 28, 2026," the release added.
"This crop loan waiver will be of great benefit to farmers who wish to obtain loans for the upcoming cultivation season," the release said, quoting Vijay.
