CM Vijay hikes crop loan waiver; Left parties not impressed

CHENNAI: Marking 100 days in office, Chief Minister C Joseph Vijay on Monday announced an enhancement in the full crop loan waiver limit to Rs 75,000, bowing to persistent demands from the farming community.

Making a statement under Rule 110 in the Assembly, the Chief Minister said farmers who had taken crop loans between Rs 75,000 and Rs 1 lakh would now be eligible for a waiver of up to Rs 75,000. Within 15 days of assuming power in May, the TVK government had waived agricultural loans up to Rs 50,000.

"If a farmer has borrowed between Rs 75,000 and Rs 1 lakh, the maximum waiver will be Rs 75,000. For loans exceeding Rs 1 lakh, the cap remains at Rs 35,000," Vijay said.

He noted that 2,38,264 farmers would gain from the enhanced relief, getting an additional waiver of up to Rs 40,000. This revision will cost the exchequer an additional Rs 953.06 crore. With this, the overall scheme outflow rises to Rs 6,220 crore, benefiting nearly 13.34 lakh farmers. The scheme is already under implementation, with crop loans of 13.34 lakh farmers written off as of July 31, he added.

The announcement, however, failed to impress the Left parties supporting the government. CPM state secretary P Shanmugam recalled that TVK's manifesto had promised a complete loan waiver for small and marginal farmers, and 50% for others. He pointed out that those borrowing over Rs 1 lakh continue to get only Rs 35,000. "A minimum waiver of Rs 75,000 for all farmers, regardless of the loan size, would have offered genuine relief," Shanmugam said, urging the government to reconsider.

BS Masilamani, general secretary of the CPI-affiliated Tamil Nadu Farmers Association, also voiced dissatisfaction over the partial waiver structure.