Chennai: Tamil Nadu Chief Minister C. Joseph Vijay on Tuesday announced a complete waiver of crop loans of up to ₹75,000 taken by farmers from cooperative banks between May 1, 2025, and February 28, 2026, providing major relief to the state’s farming community.
The scheme is expected to benefit around 14.43 lakh farmers across Tamil Nadu and will impose an additional financial burden of ₹5,932 crore on the state exchequer, according to an official government statement.
The announcement came after a review meeting chaired by the Chief Minister with ministers and senior government officials at the State Secretariat.
Under the revised scheme, farmers who borrowed up to ₹75,000 from cooperative banks during the specified period will receive a full loan waiver. Those who availed loans exceeding ₹75,000 will receive a waiver of ₹35,000, the government said.
The decision follows representations from farmer groups after the state government last month announced a waiver of crop loans up to ₹50,000 for small and marginal farmers. The latest move expands the scope of the relief package and increases the waiver amount.
According to the government, the Reserve Bank of India’s Model Operating Procedures for Government Loan Waiver Schemes require states to reimburse the waived loan amount within 45 to 60 days.
Despite fiscal constraints, the Tamil Nadu government decided to proceed with the expanded relief package to support farmers ahead of the upcoming cultivation season.
“Considering the current financial position and available resources of the state, the government has decided to waive nearly ₹6,000 crore worth of crop loans for 14.43 lakh farmers,” the statement said.
Chief Minister Vijay said the waiver would help farmers access fresh credit for the next agricultural cycle and reduce their financial burden.
The move is expected to provide a significant boost to the agricultural sector and improve liquidity for farmers preparing for the forthcoming sowing season.
