TN Govt Revises Farm Loan Relief, Waives Cooperative Crop Loans Up to Rs 75,000, Extends Benefits to All Farmers

In a major relief measure for the farming community, Tamil Nadu Chief Minister C. Joseph Vijay on Tuesday unveiled a revised crop loan waiver scheme, offering a complete waiver for cooperative bank crop loans of up to ₹75,000 taken between May 1, 2025, and February 28, 2026, across all categories of farmers.

The announcement was made following a review meeting chaired by the Chief Minister at the State Secretariat, attended by ministers from the Agriculture, Cooperation and Finance departments, along with senior government officials.

According to an official statement, all marginal, small and large farmers who borrowed up to Rs 75,000 from cooperative banks during the specified period will receive a complete waiver of their outstanding crop loans. Farmers with crop loans exceeding Rs 75,000 will be eligible for a waiver of Rs 35,000 each.

The revised scheme is expected to benefit 14.43 lakh farmers across Tamil Nadu and will impose a financial burden of Rs 5,932.23 crore on the state government.

Officials said that crop loans worth Rs 3,058.06 crore availed by 6,22,313 farmers with borrowings up to Rs 75,000 will be written off in full. These beneficiaries include 5.22 lakh marginal farmers, 94,427 small farmers and 4,753 large farmers.

Additionally, around 8.21 lakh farmers with loans above Rs 75,000 will receive a waiver of Rs 35,000 each, covering loans worth Rs 2,874.17 crore. This group includes approximately 3.10 lakh marginal farmers, 4.21 lakh small farmers and 88,795 large farmers.

In total, crop loans amounting to Rs 5,932.23 crore taken by 14,43,504 farmers will be waived under the revised scheme.

The announcement comes in response to demands from farmers’ associations and political parties seeking broader loan relief. The revised package significantly expands the scope of the scheme announced on May 25, 2026, under which marginal farmers were eligible for a full waiver of loans up to Rs 50,000, small farmers received a 50 per cent waiver on loans up to Rs 50,000, and large farmers with crop loans up to Rs 1 lakh were granted a waiver of Rs 5,000.

The earlier scheme was estimated to cost the government Rs 2,044.46 crore and benefit around 14.22 lakh farmers. With the latest revision, both the financial outlay and the number of beneficiaries have increased substantially.

Farmer groups had earlier staged protests demanding a complete waiver of crop loans for holdings up to five acres and a 50 per cent waiver for larger holdings, citing promises made in the Tamilaga Vettri Kazhagam (TVK) election manifesto.

The government stated that the decision was taken after carefully considering the state's financial position. It also assured that, in accordance with Reserve Bank of India