Tamil Nadu Chief Minister C Joseph Vijay in a file photo.
TN govt raises farmer crop loan waiver limit to ₹75,000 after widespread protests
Chief Minister Vijay approves a ₹5,932 crore relief package benefiting over 14.43 lakh farmers, but unions slam the measure as an inadequate "half-hearted" step
In a significant move, the Tamil Nadu government has revised its crop loan waiver scheme, raising the waiver limit from ₹50,000 to ₹75,000 for loans availed through cooperative banks.
The decision follows a high-level review meeting chaired by Tamil Nadu Chief Minister Vijay on June 15.
According to an official press release dated June 16, 2026, 1,443,504 farmers who took crop loans between May 1, 2025 and February 28, 2026 will benefit from the waiver. The total financial implication for the state exchequer is estimated at ₹5,932.23 crore.
Multiple problems
The revision follows the initial announcement on May 25, 2026, which had set the waiver ceiling at ₹50,000. That announcement triggered strong protests from farmers, particularly in the delta districts. Farmers had been reeling under multiple crises:
1. Delayed opening of the Mettur dam, which severely affected the kuruvai paddy seas. ..on
2. Last year, kuruvai was cultivated on only around 31,000 acres in the delta region this year the area has shrunk further due to water scarcity.
3. Uncertainty over water release for the upcoming samba season.
4. Sharp rise in input costs fertilisers, diesel, and labour wages have increased manifold.
PR Pandian, president of the Farmers’ Association Federation, strongly criticised the government’s move.
Farmers disappointed
Speaking to The Federal, he said, “This decision appears to have been taken without proper basis. We are deeply disappointed. The government has failed to fulfil the election promise of a complete loan waiver. Costs of urea, diesel and wages have skyrocketed, but the relief offered is inadequate. We will not accept this half-hearted measure and will continue our protests.”
Pandian demanded that the government implement a complete waiver of all crop loans as promised during the elections, arguing that partial relief cannot address the severe agrarian distress.
The state government, however, maintains that the enhanced waiver up to ₹75,000 will bring substantial relief to over 14.43 lakh farmers and reduce their debt burden significantly during a difficult cropping season marked by water scarcity and rising costs.
The official release emphasised that the figures were arrived at after detailed review and data verification.
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