CHENNAI: In a significant expansion of its farm debt relief, the State government has extended a crop loan waiver of up to Rs 75,000 to every eligible farmer who borrowed from cooperative societies between May 1, 2025, and March 31, 2026, irrespective of the loan amount, with the revised scheme expected to benefit around 13.25 lakh farmers, removing the tier system, which was capped at a maximum of just Rs 35,000.

But the decision falls short of farmers' demand for a complete loan waiver, as the TVK promised ahead of the Assembly polls.

The government has sanctioned Rs 2,842.774 crore for implementing the scheme during 2026-27, according to a Government Order issued by the Cooperation, Food and Consumer Protection Department on November 6.

The decision follows consultations with farmers' organisations on October 22, though demands for a comprehensive waiver of crop loans remain unresolved.

Under the revised structure, farmers with outstanding crop loans of up to Rs 75,000 will receive a complete waiver covering the principal and interest. Those whose loans exceed Rs 75,000 will be eligible for a flat waiver of Rs 75,000, with borrowers bearing the remaining liability.

Under the order, 5,90,621 farmers with loans up to Rs 75,000 will receive a full waiver, while another 7,34,260 farmers with loans above that limit will get relief of Rs 75,000 each. The two categories account for approximately 13.25 lakh beneficiaries.

The latest decision follows a series of revisions to the crop loan waiver announced earlier this year. In June, the government raised the full waiver limit to Rs 75,000 and offered Rs 35,000 for loans exceeding that amount. In August, it further enhanced relief for borrowers with loans between Rs 75,000 and Rs 1 lakh.

The latest order extends the higher relief to all eligible borrowers with loans above Rs 75,000, removing the earlier distinction based on loan size.