Tamil Nadu extends crop loan waiver to Rs 75,000 for all eligible farmers

CHENNAI: The Tamil Nadu government has extended the 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. The revised scheme is expected to benefit around 13.25 lakh farmers.

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 their demand for a comprehensive waiver of crop loans remains unaddressed.

Under the revised scheme, farmers with outstanding crop loans of up to Rs 75,000 will receive a complete waiver covering both principal and interest. Those with loans exceeding Rs 75,000 will be eligible for a flat waiver of Rs 75,000, with the remaining liability to be borne by the borrowers.

According to the order, 5,90,621 farmers with loans of up to Rs 75,000 will receive a complete waiver, while another 7,34,260 farmers with loans exceeding the limit will receive relief of Rs 75,000 each. Together, the two categories account for approximately 13.25 lakh beneficiaries.

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

The latest order extends the enhanced relief to all eligible borrowers with loans exceeding Rs 75,000, removing the earlier distinction based on the loan amount.