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Tamil Nadu

Crop loan waiver: Farmers suffer as co-operative societies delay returning pledged jewels awaiting official order

During the Purattasi-Rabi season of 2025-26, farmers in Thoothukudi district cultivated millets, pulses, crops, oilseeds and cash crops

DT NEXT Bureau

THOOTHUKUDI: Despite the announcement of a crop loan waiver two months ago, officials have not returned pledged by farmers, stating that the official order is awaited.

During the Purattasi-Rabi season of 2025-26, farmers in Thoothukudi district cultivated millets, pulses, crops, oilseeds and cash crops. Due to a deficit of rain, the farmers did not get the expected yield.

In 2025, farmers staged protests seeking compensation for severely affected crops. However, co-operation societies reportedly said that no compensation would be provided, alleging that the farmers gave incorrect statistics, showing that the yield was higher than average last year.

Meanwhile, farmers obtained crop loans from primary agricultural cooperative credit societies by submitting crop records and by pledging jewellery. They continued to urge the government to waive the crop loans.

The newly formed TVK government also announced in its election promise that crop loans obtained by farmers from cooperative credit societies would be waived. Based on this, the government announced various waiver slabs amid changes to its position.

Farmers who had borrowed up to Rs 75,000 were to receive a full waiver, while those who had borrowed Rs 1 lakh were to receive a waiver of Rs 75,000. Those who had borrowed more than Rs 1 lakh were to receive a waiver of Rs 35,000, according to the announcements.

Some farmers had obtained loans of up to Rs 2 lakh by submitting crop records, while others had obtained crop loans by pledging jewellery from their homes.

Despite two months since the waiver was announced, farmers have not been issued loan-free certificates. Further, the jewellery pledged as security for the crop loans has not been returned to them.

When asked, cooperative society secretaries reportedly said that they had not received an order from the Tamil Nadu government to return the farmers' jewellery.

The next cultivation season is due to begin within 20 days. Farmers will require their jewellery to pledge them again for crop loans.

Karisal Bhoomi Farmers' Association president Varadarajan has urged the State government to display a list of farmers who benefited from the crop loan waiver on a notice board so that it is accessible to everyone.

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