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Tamil Nadu Government Raises Crop Loan Waiver Limit to Rs 75,000, Aiding 14.43 Lakh Farmers

Jun 18 2026

Tamil Nadu Government Raises Crop Loan Waiver Limit to Rs 75,000, Aiding 14.43 Lakh Farmers

The Tamil Nadu government has expanded its crop loan waiver scheme, offering enhanced debt relief to farmers who availed crop loans through cooperative banks. Under the revised decision, farmers are now eligible for a full loan waiver of up to Rs 75,000, addressing criticism over the earlier cap of Rs 50,000. The decision was taken after a high-level review meeting held at the state secretariat on June 15, 2026. The review was initiated following widespread demands from farmers, agricultural groups, and other stakeholders across the state to broaden the scope of the original waiver scheme announced on May 25, 2026. The earlier announcement had limited full loan relief to small and marginal farmers with crop loans up to Rs 50,000. As per the revised scheme, the government will provide a 100% waiver for crop loans up to Rs 75,000. For farmers with crop loans exceeding Rs 75,000, a fixed waiver amount of Rs 35,000 will be provided. The scheme applies to crop loans availed between May 1, 2025, and February 28, 2026, through cooperative banking institutions. In total, approximately 14.43 lakh farmers across Tamil Nadu are expected to benefit from the expanded waiver. The total financial burden on the state exchequer is estimated at Rs 5,932.23 crore. Of the total beneficiaries, around 6.22 lakh farmers will receive full waivers for loans up to RS 75,000, amounting to Rs 3,058.06 crore. Meanwhile, about 8.21 lakh farmers with loans above Rs 75,000 will receive fixed waivers of Rs 35,000 each, totaling Rs 2,874.17 crore. Overall, 1,443,504 farmers will receive loan relief under the scheme. The waiver is expected to offer significant financial relief to the farming community, with individual benefits ranging from a minimum of Rs 35,000 to a maximum of Rs 75,000, helping reduce debt stress and improve agricultural sustainability. However, despite the expansion, some farmers’ groups have expressed dissatisfaction, stating that the revised measures do not fully address the financial challenges faced by farmers with higher loan burdens.

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