Tamil Nadu Chief Minister C. Joseph Vijay announced an expansion of the state's farm-loan waiver scheme to provide relief to roughly 13.34 lakh farmers [2].
The move aims to reduce the debt burden on agricultural workers and provide immediate financial stability to rural households across the state [1].
Under the updated guidelines, cooperative farm loans up to ₹75,000 will be fully waived [1]. For farmers with loans ranging between ₹75,000 and ₹1 lakh, the state will provide a waiver of up to ₹75,000 [1]. Loans exceeding ₹1 lakh will continue to receive a maximum waiver of ₹35,000 [1].
The total financial outlay for the expanded scheme is ₹6,220 crore [2]. This expansion includes over 1.38 lakh new beneficiaries, bringing the total number of farmers receiving aid to 13.34 lakh [1, 2].
Government officials said the program is designed to alleviate the pressure on small-scale farmers who struggle with repayment due to fluctuating crop yields and market volatility [1]. The tiered system ensures that those with the smallest debts receive the most significant proportional relief, effectively clearing their balances, while still providing a capped subsidy for larger loans [1].
This initiative follows a pattern of agricultural subsidies in the region intended to prevent rural insolvency. The state government said the funding is allocated to ensure the sustainability of the farming sector [2].
“Cooperative farm loans up to ₹75,000 will be fully waived”
The expansion of the loan waiver reflects a strategic effort by the Tamil Nadu government to stabilize the rural economy by targeting the most indebted small-scale farmers. By offering a 100% waiver for loans under ₹75,000, the state is prioritizing the complete removal of debt for the lowest-income tier of agricultural workers, which may reduce the risk of rural financial crises but increases the state's immediate fiscal expenditure.
