CM Vijay Announces Crop Loan Waiver for Farmers, Opposition Alleges ‘Breach of Promise’

The Tamil Nadu government has announced a crop loan waiver scheme for farmers, with Chief Minister C. Joseph Vijay declaring complete waiver of cooperative bank crop loans up to Rs 50,000 for marginal farmers across the state. The government has also announced relief of up to Rs 5,000 for large farmers and up to 50 percent waiver for certain categories of small farmers.

The announcement was made after a review meeting held at the State Secretariat in Chennai. According to the Chief Minister, the scheme will benefit around 14.22 lakh farmers who availed cooperative bank crop loans between May 1, 2025 and February 28, 2026. The waiver will impose an additional financial burden of Rs 2,044 crore on the state government.

The government said the move is aimed at helping farmers secure fresh institutional credit ahead of the upcoming cultivation season. Crop loan waiver was one of the major promises made by Tamilaga Vettri Kazhagam (TVK) during the Assembly election campaign, with Vijay assuring farmers that agricultural loans would be written off if the party came to power.

Under the scheme, marginal farmers with crop loans up to Rs 50,000 will receive a complete waiver, while those with higher loan amounts will receive partial relief. The government also announced that small farmers in certain categories would be eligible for up to 50 percent waiver.

TVK leader and Tamil Nadu minister CTR Nirmalkumar said nearly 16.92 lakh farmers had received agricultural loans in the state, out of which loans of 14.22 lakh farmers had now been waived. “This was one of our election promises, and the government has fulfilled it,” he said.

However, the announcement has drawn criticism from farmer organizations and opposition parties, which alleged that the government had diluted its election promise of a comprehensive farm loan waiver.

Farmer groups argued that the present scheme covers only a limited section of cultivators and demanded uniform waiver of loans for all farmers irrespective of landholding size. Several organizations said the relief structure based on categories of farmers would leave out many cultivators who are struggling with rising input costs and debt burden.

Former Deputy Chief Minister Udhayanidhi Stalin accused the government of betraying farmers by failing to implement the full waiver promised during the election campaign. He alleged that the government had not delivered on its commitment to farmers.

AIADMK leaders also attacked the TVK government over the announcement, calling it a “scientific deception” aimed at diverting public attention from alleged political controversies and “horse-trading” in the state.

Responding to the Chief Minister’s announcement, AIADMK General Secretary and former Chief Minister Edappadi K. Palaniswami said TVK had promised complete waiver of crop loans for all farmers owning up to five acres of land. He alleged that changing the eligibility criteria and imposing a ceiling of Rs 50,000 amounted to a “major betrayal of trust.”

“In 2021, our government waived crop loans worth Rs 12,110 crore, benefiting 16.43 lakh farmers. But now, in 2026, the present government is waiving only Rs 2,044 crore. This is a huge betrayal of farmers,” Palaniswami said in a statement.

Tamil Nadu has a history of large-scale farm loan waivers through cooperative institutions. In 2021, the AIADMK government led by Palaniswami announced waiver of cooperative crop loans worth around Rs 12,110 crore, benefiting more than 16 lakh farmers across the state.

Political observers believe the latest announcement is likely to remain a key issue in Tamil Nadu politics, especially ahead of the upcoming local body elections, with opposition parties and farmer groups continuing to demand a broader and more inclusive waiver scheme.