The Tamil Nadu government has expanded its crop loan waiver scheme, providing full debt relief up to Rs 75,000 for farmers who borrowed through cooperative banks. The move comes in the wake of criticism of an earlier announcement in which loans were waived only up to Rs 50,000.
Revised Loan Waiver Details
According to an official statement, Chief Minister C. Joseph Vijay made the announcement following a high-level review meeting held on June 15, 2026, at the Chief Secretariat. The review was prompted by widespread demands from various stakeholders across the state to broaden the initial waiver scheme announced on May 25, 2026, which had offered full relief only up to Rs 50,000 for small and marginal farmers.
Under the revised scheme, the government will provide a 100% waiver of the loan amount for crop loans up to Rs 75,000 and a fixed waiver of Rs 35,000 for loans above Rs 75,000.
The waiver covers crop loans availed between May 1, 2025, and February 28, 2026. A total of 14.43 lakh farmers will benefit from this scheme, with the total financial commitment for the state government estimated at Rs 5,932.23 crore.
Beneficiaries and Financial Outlay
Overall, 6,22,313 beneficiaries will receive Rs 3,058.06 crore for loans up to Rs 75,000, while 8,21,191 beneficiaries will receive Rs 2,874.17 crore for loans above Rs 75,000, resulting in a total of 14,43,504 farmers receiving a waiver of Rs 5,932.23 crore. The state government said the announcement aligns with Reserve Bank of India guidelines, which require the government to settle the full waived amount with banks within 45 to 60 days. The government noted that the decision was made after carefully assessing the state’s financial resources.
This waiver is expected to provide substantial relief to farmers, with individual benefits ranging from a minimum of Rs 35,000 to a maximum of Rs 75,000.
The government added that the move is also expected to encourage farmers to avail fresh loans for the upcoming cultivation season without the burden of previous debts.
Criticism from Farmers and Opposition
The farmers’ association 'Tamilaga Kaviri Vivasaayigal Sangam' criticised the expanded crop loan waiver announcement. It pointed out that C. Joseph Vijay had promised in his 2026 Assembly election manifesto to fully waive crop loans for farmers owning up to 5 acres and 50% for those with larger holdings. The farmers urged the Chief Minister to honour TVK’s election promise.
In a social media post, PMK leader Anbumani Ramadoss also criticised the decision. He argued that citing RBI guidelines to deny a full waiver was unjustified and said the government could fully waive loans for small and marginal farmers if it had the intention.
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About the Author
Antony Fernando
Antony Fernando, a Trichy-based journalist, serves as a Principal Correspondent for The Times of India, covering Trichy and the Cauvery delta districts in Tamil Nadu. Previously an Aero Stress Engineer, he now focuses on agriculture, environment, water resources, crime, wildlife, fisheries, tourism, and human interest stories. Antony holds a Bachelor of Engineering (BE) in Aeronautical Engineering from VSB Engineering College and a Postgraduate Diploma (PGD) in Broadcast Journalism from the Indian Institute of Journalism and New Media. Applying his engineering background and experience, Antony delivers insightful, technically informed journalism that captivates readers, highlights critical issues, and advocates for change.
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