In a major relief measure for the farming community, Tamil Nadu Chief Minister C. Joseph Vijay on Monday announced an expansion of the state’s cooperative crop loan waiver scheme, increasing financial assistance to farmers across different categories.
Making the announcement in the Tamil Nadu Legislative Assembly under Rule 110, the Chief Minister said the government would provide additional relief despite the state’s financial constraints, reaffirming its commitment to protecting farmers’ interests.
Under the revised scheme, crop loans of up to Rs 75,000 obtained through cooperative banks will be completely waived. Farmers who borrowed between Rs 75,000 and Rs 1 lakh will be eligible for a waiver of up to Rs 75,000, while those with loans exceeding Rs 1 lakh will continue to receive a waiver of up to Rs 35,000.
The announcement builds on the government’s earlier decision to waive loans of up to Rs 50,000 shortly after assuming office in May 2026. The scheme was later expanded in June, resulting in cooperative crop loan waivers worth Rs 5,932.23 crore for 14.44 lakh farmers.
According to the government, Rs 5,267 crore had already been credited to the accounts of 13.34 lakh farmers by July 31, 2026.
The latest enhancement will primarily benefit 2.38 lakh farmers who borrowed between Rs 75,000 and Rs 1 lakh, enabling many of them to receive an additional waiver of up to Rs 40,000.
The expanded package will impose an additional burden of Rs 953.06 crore on the state exchequer, taking the total crop loan waiver under the scheme to nearly Rs 6,220 crore.
The Chief Minister said that although the Reserve Bank of India now requires governments to reimburse cooperative banks for loan waiver schemes within 45 to 60 days, the state had decided to prioritize farmers’ welfare even under challenging financial conditions.
