Tamil Nadu Chief Minister C Joseph Vijay has announced a significant cooperative farm loan waiver, providing crucial financial relief to over 1.38 lakh farmers across the state amidst ongoing economic challenges.
Key Points
- Tamil Nadu Chief Minister C Joseph Vijay announced a full waiver for cooperative farm loans up to Rs 75,000.
- Loans between Rs 75,000 and Rs 1 lakh will receive a waiver of up to Rs 75,000, while loans above Rs 1 lakh get a maximum waiver of Rs 35,000.
- The initiative provides additional support to over 1.38 lakh farmers, incurring an extra financial commitment of Rs 953.06 crore.
- This latest announcement builds on previous waivers, bringing the total waiver amount to Rs 6,220 crore for 13.34 lakh farmers.
- The decision was made despite financial constraints and RBI guidelines, following consultations with agricultural unions.
Tamil Nadu Chief Minister C Joseph Vijay on August 17, Monday, announced full waiver of cooperative farm loans upto Rs 75,000.
He further annouced a waiver upto Rs 75,000 for loans ranging between Rs 75,000 and Rs one lakh.
Details Of The Loan Waiver Scheme
Emphasising that agriculture is the backbone of the state and that the prosperity of the nation depended on supporting farmers, he said despite the state facing financial constrains, his government decided to extend additional support of Rs 953.06 crore to farmers.
Making an announcement under Rule 110 in the assembly, Vijay said the government previously waived agricultural loans up to Rs 50,000 within 15 days of taking office in May.
This was later expanded to provide full waivers for loans up to Rs 75,000, and a Rs 35,000 waiver for loans exceeding Rs 75,000, benefiting over 14.44 lakh farmers.
Following consultations with agricultural unions on August 7, 2026, the government decided to provide additional relief despite current financial constraints and Reserve Bank of India guidelines that required rapid settlements with cooperative banks, the chief minister said, announcing additional benefits.
As per his announcement, cooperative farm loans up to Rs 75,000 will now be provided 100 per cent waiver, loans between Rs 75,000 and Rs 1 lakh, will receive up to Rs 75,000 in waivers, and loans above Rs 1 lakh will receive a maximum waiver of Rs 35,000.
"This initiative will provide additional support to over 1.38 lakh farmers, representing an additional financial commitment of approximately Rs 953.06 crore by the government, with a total waiver amount reaching Rs 6,220 crore for 13.34 lakh farmers," the CM said.
