Chennai (Tamil Nadu) [India], August 17 (HBTV): Tamil Nadu Chief Minister C Vijay Joseph on Monday announced an expanded crop loan waiver scheme in the State Legislative Assembly, taking the total financial assistance to INR 6,220 crore and benefiting 13.34 lakh farmers across the state.
Emphasising his government's commitment to rural livelihoods as it approaches the 100-day milestone, the Chief Minister reiterated that agricultural welfare remains the core priority of the Tamilaga Vettri Kazhagam (TVK) administration.
Addressing the Assembly, the Chief Minister said, 'If the people of Tamil Nadu are our life, then farmers are our lifeline... Protecting the livelihoods of farmers, reducing their debt burden and strengthening agriculture are among the foremost responsibilities of this government.'
Farmers with cooperative bank crop loans of up to INR 75,000 will now get a 100 per cent waiver. Under the new slabs, for loans between INR 75,000 and INR 1 lakh, the waiver will be capped at INR 75,000. This provides an additional benefit of up to INR 40,000 to 2,38,264 farmers.
For loans above INR 1 lakh, a flat waiver of INR 35,000 will be provided. The expanded slabs add INR 953.06 crore to the package, taking the total outlay to INR 6,220 crore. As of July 31, INR 5,267 crore has already been credited directly to the accounts of 13.34 lakh farmers.
'Nevertheless, based on the principle that the welfare of Tamil Nadu's farmers is the welfare of this government, the government is providing a total crop-loan waiver of INR 6,220 crore to 13.34 lakh farmers,' he said.
Tracing the evolution of the policy, CM Vijay highlighted that within 15 days of assuming office on May 25, the government had initially waived loans of up to INR 50,000, which was later expanded on June 19 following extensive consultations with farmers' associations.
Addressing the timeline of implementation, the Chief Minister pointed out a key departure from previous administrations.
While past governments cleared cooperative bank dues in 12 instalments over four to five years, the current government is adhering to the Reserve Bank of India's November 28, 2025 directive requiring full reimbursement to cooperative banks within 45 to 60 days.
'Therefore, taking into account the financial resources available to the Tamil Nadu government and the prevailing financial situation, this government has decided to provide an additional crop-loan waiver for the welfare of farmers,' he said.
Despite prevailing state budget constraints, the government reaffirmed its pledge to swiftly absorb the financial load to ensure immediate relief for Tamil Nadu's farming community. (ANI)