Chennai, 16 June (H.S.):

In a major relief measure for the farming community, Tamil Nadu Chief Minister C. Joseph Vijay on Tuesday announced a significant expansion of the State’s crop loan waiver scheme, extending full waiver benefits to crop loans of up to Rs 75,000 availed through cooperative banks.

The decision follows demands from farmers’ organisations and political parties seeking broader coverage under the scheme. The State government had earlier announced a waiver for crop loans up to Rs 50,000 obtained by small and marginal farmers. However, several stakeholders argued that many cultivators with higher borrowings remained outside the ambit of the scheme.

Acting on these representations, the government conducted a detailed review of the programme at a high-level meeting chaired by the Chief Minister at the Secretariat on Monday. Ministers and senior officials from the Agriculture, Cooperation, Finance, Planning and Development departments participated in the deliberations.

Under the revised package, crop loans obtained through cooperative banks between May 1, 2025 and February 28, 2026, with outstanding amounts of up to Rs 75,000, will now be fully waived. The government has also extended assistance to farmers whose crop loan liabilities exceed Rs 75,000. Such borrowers will receive financial relief of Rs 35,000 each.

According to official estimates, the enhanced scheme will benefit nearly 14.43 lakh farmers across Tamil Nadu and involve an additional expenditure of Rs 5,932.23 crore.

The government said around 8.33 lakh marginal farmers would receive benefits worth Rs 3,599.67 crore, while 5.16 lakh small farmers would be covered under assistance amounting to Rs 1,995.42 crore. Another 93,548 farmers belonging to other categories would receive relief totalling Rs 337.15 crore.

Officials said the revised package was framed after considering farmers’ demands and in accordance with Reserve Bank of India guidelines governing government-sponsored loan waiver programmes.

The Chief Minister has directed officials to implement the expanded scheme without delay so that eligible farmers can access fresh institutional credit and prepare for the upcoming cultivation season without financial constraints.

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Hindusthan Samachar / Arun Lakshman