In one of the first major decisions of the new government, Tamil Nadu CM Thalapathy Vijay has announced a major crop loan waiver scheme for farmers who borrowed through cooperative banks, fulfilling a key election promise within weeks of assuming office.
Under the scheme, farmers with outstanding crop loans of up to Rs 50,000 will receive a complete waiver. The relief applies to loans taken between May 2025 and February 2026 and is expected to benefit more than 14 lakh farmers across the state. The Tamil Nadu government will spend nearly Rs 2,044 crore on the initiative.
The waiver has been structured in slabs, with higher loan categories receiving partial relief. Farmers with loans exceeding Rs 1 lakh will also receive assistance of up to Rs 5,000.
The government said the move aims to restore farmers’ eligibility for fresh crop credit before the next sowing season, as many small and marginal farmers had become ineligible for new loans due to pending dues.
The announcement is being seen as a major political and economic step by the new administration, with the focus now shifting to smooth implementation and timely disbursal of relief to farmers.