TN Agri Budget 2026: Tamil Nadu to provide Rs 17,000 crore in crop loans to farmers

CHENNAI: The Tamil Nadu government will provide Rs 17,000 crore in crop loans to farmers during the current financial year to meet their short-term agricultural credit requirements, Agriculture and Farmers’ Welfare Minister R Vinoth announced while presenting the 2026-27 Agriculture Budget in the Assembly on Thursday.

The Agriculture Minister said the crop loans would help farmers meet the credit requirements for cultivation during the year. “Crop loans to the tune of Rs 17,000 crore will be provided to meet the short-term agricultural credit requirements for crop cultivation,” the Budget document stated.

In addition, the government will extend Rs 3,000 crore in working capital loans to support allied agricultural activities such as animal husbandry, fisheries and other farm-related enterprises. To improve the livelihood of landless members of the Scheduled Caste community, the government will provide medium-term and capital loans through cooperative banks for livestock rearing.

Highlighting the progress made so far, the minister said that as of July 15, crop loans worth Rs 159.41 crore had been disbursed to 12,752 farmers during the current financial year. During the same period, livestock maintenance loans amounting to Rs 140.91 crore had been provided to 19,324 beneficiaries.

Speaking to DT Next, Agricultural Production Commissioner and Agriculture Secretary P Shankar defended the government’s priorities, saying the State had stepped in after the Union government discontinued subsidy for paddy seed production and distribution. “The government has introduced a special scheme for providing subsidies for paddy seed production and distribution,” he said, referring to the new State-funded initiative announced in the Budget.

When asked why the Budget contained no proposal to increase paddy cultivation area despite the continuing shrinkage, Shankar acknowledged that the objective was to prevent further decline rather than expand cultivation. “This subsidy scheme will further stop the decrease in paddy cultivation area. But it won’t help increase it. That means the present cultivation area can at least be sustained in the future,” he said.

Notably, neither the Agriculture Secretary nor the Budget document disclosed the State’s present paddy cultivation area, even though detailed targets have been announced for expanding pulses, oilseeds, cotton and minor millets over the next five years.

On the politically sensitive issue of farmers’ long-pending demand to raise the State incentive over the Minimum Support Price to Rs 3,500 per quintal for paddy and Rs 4,500 per tonne for sugarcane, Shankar indicated that the government was actively considering the demand. “The government has taken into consideration the demands of farmers. Soon, it will an- nounce a good decision,” he told reporters here, hinting that a decision could be taken during the ongoing Budget session.

On the demand for a complete crop loan waiver, Shankar said consultations were continuing. “Discussions at various levels are on, and the government will take appropriate action soon,” he said.