Tamil Nadu Announces Major Farm Loan Relief, Waives Cooperative Crop Loans Up To Rs. 75,000

Tamil Nadu Chief Minister C. Joseph Vijay has announced major relief for farmers with crop loans taken from cooperative banks. Addressing the state Assembly on Monday, the Chief Minister announced that crop loans of up to Rs. 75,000 would be waived in full. For loans above Rs. 75,000 and up to Rs. 1 lakh, the waiver will be capped at Rs. 75,000. A waiver of Rs. 35,000 will continue for loans exceeding Rs. 1 lakh.

The decision is expected to benefit around 1.38 lakh additional farmers and impose an additional financial burden of Rs. 953.06 crore on the state exchequer. The Chief Minister said that despite financial constraints, the TVK government remained committed to providing additional support to farmers.

Major Decision After 100 Days In Office

Chief Minister Vijay made the announcement as his government completed 100 days in office. He said that within 15 days of assuming office, the government had waived agricultural loans of up to Rs. 50,000.

The relief was subsequently expanded to provide a full waiver for loans of up to Rs. 75,000 and a Rs. 35,000 waiver for loans exceeding Rs. 75,000. The revised scheme benefited more than 14.44 lakh farmers.

The latest decision further expands the relief for farmers with loans between Rs. 75,000 and Rs. 1 lakh. Under the new provision, such farmers will receive a waiver of up to Rs. 75,000, while the remaining amount will have to be repaid.

Election Promise And Farmers' Demand

Farm loan waivers have been a key electoral promise of Chief Minister Vijay's Tamilaga Vettri Kazhagam (TVK). The government initially announced a waiver of agricultural loans up to Rs. 50,000 in May. Subsequently, demands were raised by farmer organisations and opposition parties to expand the scope of the scheme.

In June, the government revised the scheme and extended full waiver benefits for crop loans of up to Rs. 75,000. It also provided a Rs. 35,000 waiver for loans exceeding Rs. 75,000. The revised scheme was expected to benefit more than 14.43 lakh farmers.

With the latest announcement, farmers with crop loans between Rs. 75,000 and Rs. 1 lakh will receive additional relief. The government estimates that the latest measure will benefit around 1.38 lakh more farmers.