Tamil Nadu Government Announces Additional Crop Loan Waiver Worth ₹953 Crore
Chennai, August 17, 2026: Tamil Nadu Chief Minister Thiru S. Pasap Vijay on Monday announced an additional waiver of crop loans availed by farmers through cooperative banks, under Rule 110 in the Tamil Nadu Legislative Assembly.
The Chief Minister said the decision was aimed at protecting the interests of the farming community and reducing the financial burden on farmers, despite the state government’s financial constraints.
The government had initially announced on May 25, 2026, a full waiver of crop loans up to ₹50,000 for marginal, small and other farmers. Following representations from farmers’ associations across Tamil Nadu, the waiver limit was subsequently increased to ₹75,000. A waiver of ₹35,000 was also announced for farmers with loans exceeding ₹75,000.
Accordingly, an order issued on June 19, 2026, provided for the waiver of cooperative crop loans amounting to ₹5,932.23 crore for 14.44 lakh farmers. By July 31, ₹5,267 crore had been released and credited to the accounts of 13.34 lakh farmers.
The latest decision follows consultations held on August 7 with representatives of farmers’ associations, senior ministers and departmental secretaries. During the meeting, farmers’ representatives sought a further increase in the crop loan waiver.
Under the revised scheme, crop loans of up to ₹75,000 will continue to receive a 100% waiver. For loans between ₹75,000 and ₹1 lakh, a waiver of up to ₹75,000 will be provided. For crop loans exceeding ₹1 lakh, a waiver of up to ₹35,000 will be granted.
The government said 2,38,264 farmers with crop loans between ₹75,000 and ₹1 lakh would benefit from the enhanced waiver. These farmers will have the opportunity to receive an additional waiver of up to ₹40,000 over and above the relief already provided.
The additional waiver is expected to impose an estimated ₹953.06 crore financial burden on the state government. With the latest decision, the total crop loan waiver is expected to reach approximately ₹6,220 crore, benefiting around 13.34 lakh farmers.
Explaining the financial constraints involved, the Chief Minister said that in previous waiver schemes, the government’s dues to cooperative societies were often settled over four to five years. For example, the amount relating to the 2021 crop loan waiver was paid to cooperative societies in 12 instalments between 2021 and 2026.
However, citing operational guidelines issued by the Reserve Bank of India in a letter dated November 28, 2025, the government said crop loan waiver amounts must now be paid in full to cooperative societies within 45 to 60 days.
The Chief Minister said the latest decision had therefore been taken after considering the state’s financial position, available resources and the need to safeguard farmers’ welfare.
Emphasizing the importance of agriculture, he said the prosperity of Tamil Nadu was closely linked to the well-being of its farming community.
