Tamil Nadu CM Vijay announces full waiver of cooperative farm loans up to Rs 75,000

Chennai: Tamil Nadu Chief Minister C Joseph Vijay on Monday announced full waiver of cooperative farm loans upto Rs 75,000.

Under the new measures, farmers with cooperative farm loans of up to Rs 75,000 will receive a 100 per cent waiver. For loans between Rs 75,000 and Rs 1 lakh, the government will waive up to Rs 75,000, while loans exceeding Rs 1 lakh will be eligible for a maximum waiver of Rs 35,000.

Announcing the decision under Rule 110 in the Tamil Nadu Assembly, Vijay said agriculture was the backbone of the state and that supporting farmers was essential for economic prosperity.

Despite the state's financial constraints, the government has decided to provide an additional Rs 953.06 crore in relief to farmers, he said.

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Additional relief for farmers

Vijay said his government had initially waived agricultural loans of up to Rs 50,000 within 15 days of taking office in May. The relief was subsequently expanded to cover loans up to Rs 75,000 in full, while loans above Rs 75,000 received a waiver of Rs 35,000. The earlier measures benefited more than 14.44 lakh farmers, according to the chief minister.

The latest decision followed consultations with agricultural unions on August 7, 2026. Vijay said the government decided to extend further relief despite financial constraints and Reserve Bank of India guidelines requiring timely settlements with cooperative banks.

The latest package is expected to provide additional support to more than 1.38 lakh farmers, involving an additional government commitment of about Rs 953.06 crore.

With the latest measures, the total waiver amount is expected to reach Rs 6,220 crore, benefiting 13.34 lakh farmers, Vijay said.

PTI