Trichy: The Tamil Nadu government has expanded its crop loan waiver scheme to Rs5,932.23 crore, offering full debt relief of up to Rs75,000 for farmers who availed crop loans through cooperative banks. However, the revised package has drawn criticism from farmers’ associations and opposition parties, which say it falls short of the chief minister’s election promise.
The enhanced scheme was announced by chief minister C Joseph Vijay following a review meeting at the secretariat on June 15. The move comes after widespread criticism of the earlier waiver announced on May 25, which provided full relief only for loans up to Rs50,000 at a cost of Rs2,044 crore.
Under the revised scheme, crop loans of up to Rs75,000 availed between May 1, 2025, and February 28, 2026, will be waived in full. Farmers with loans exceeding Rs75,000 will receive a fixed waiver of Rs35,000.
The government said 14.43 lakh farmers will benefit from the scheme. Of them, 6.22 lakh farmers with loans up to Rs75,000 will receive waivers totalling Rs3,058.06 crore, while 8.21 lakh farmers with larger loans will receive waivers amounting to Rs2,874.17 crore. According to the government, the decision was taken after assessing the state’s financial position and in compliance with Reserve Bank of India norms, which require governments to reimburse banks for waived loans within 45 to 60 days.
The government said the scheme would provide relief ranging from Rs35,000 to Rs75,000 per farmer and help eligible beneficiaries access fresh credit for the upcoming cultivation season.
Despite the revision, farmers’ organisations and political parties said the scheme does not fulfil the chief minister’s election promise of a complete waiver for farmers owning up to five acres and a 50% waiver for larger landholders.
A Palaniappan, president of Thamizhaga Kaviri Vivasayigal Sangam, said, “Due to the lack of Cauvery water, we could not cultivate Kuruvai. This waiver is unsatisfactory. We will continue protesting until the Chief Minister fulfils his election promise.”
AIADMK general secretary Edappadi K Palaniswami criticised the differential waiver, saying small and marginal farmers faced similar socio-economic conditions. “Ignoring this reality and introducing discrimination in the loan waiver scheme, thereby dividing already marginalised farmers, is unbecoming of good governance,” he said.
He further argued that loan amounts varied depending on the crops cultivated and that the government had failed to take this into account.
BJP state president Nainar Nagenthran urged the government to follow the example of Maharashtra in implementing farm loan waivers. “We will teach you how to keep your promises and run an honest, people-friendly administration. Do not betray the farming community that trusted you,” he said.
AMMK general secretary T T V Dhinakaran questioned the government’s approach, asking, “If rights can only be secured through protests and struggles, what is the meaning of the ‘change’ that the Chief Minister spoke about?”
PMK president Anbumani Ramadoss rejected the government’s reliance on RBI guidelines as a justification for not granting a full waiver, saying the state could provide complete relief to small and marginal farmers if it chose to do so.
