Chennai

Tamil Nadu Chief Minister C. Joseph Vijay on Tuesday unveiled an expanded crop loan waiver scheme, announcing that farmers who borrowed up to Rs 75,000 from cooperative banks during a specified period would receive a complete waiver of their outstanding loans.

The decision is expected to provide relief to 14.43 lakh farmers across the state and will impose an additional financial burden of Rs 5,932 crore on the state exchequer, according to an official government statement.

The announcement followed a high-level review meeting held at the Secretariat, attended by ministers and senior officials.

Under the revised scheme, farmers who had availed cooperative crop loans between May 1, 2025, and February 28, 2026, amounting to Rs 75,000 or less, will have their dues fully waived.

The government also extended partial relief to those with larger borrowings.

Farmers whose outstanding cooperative crop loans exceed Rs 75,000 will receive a waiver of Rs 35,000, the release stated.

The latest decision revises an earlier announcement made last month, under which the state government had approved the waiver of loans up to Rs 50,000 for small and marginal farmers who had borrowed through cooperative institutions.

According to the government, the revision comes in response to representations submitted by farmers seeking greater support amid financial pressures.

The official release noted that the Reserve Bank of India's Model Operating Procedures for Government Loan Waiver Schemes stipulate that governments should settle the entire amount under such schemes within 45 to 60 days.

Despite what it described as a challenging fiscal situation, the Tamil Nadu government decided to proceed with the enhanced relief package.

"Taking into account the state's current financial position and available resources, and despite these difficult circumstances, the Chief Minister has ordered the waiver of nearly Rs 6,000 crore in crop loans for 14.43 lakh farmers who borrowed through cooperative banks during the specified period," the statement said.

The government emphasised that the initiative would provide immediate financial relief to cultivators and improve their access to institutional credit ahead of the next agricultural season.

Quoting the Chief Minister, the release said the waiver would prove highly beneficial for farmers preparing for upcoming cultivation activities.

"This crop loan waiver will be of immense help to farmers who intend to seek fresh loans for the next cultivation season," Vijay said.

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The move is expected to strengthen the cooperative credit system while easing the debt burden on a significant section of Tamil Nadu's farming community.