Tamil Nadu govt unveils Rs 2,044.46 cr crop‑loan waiver for 1.42 million small farmers

New Delhi ( Pallavi Srivastava) : The Tamil Nadu government announced a Rs 2,044.46 crore crop‑loan waiver targeting marginal and small farmers who borrowed from cooperative banks, saying the measure will fully waive loans up to Rs 50,000 and provide graded relief for higher outstanding amounts. The package, the government said, will benefit 14,22,000 farmers and applies to cooperative‑bank loans taken between May 1, 2025 and February 28, 2026.

Under the scheme, marginal farmers with outstanding loans below Rs 50,000 will receive a full waiver. Small farmers with debts below Rs 50,000 will receive 50 per cent relief. For loans above Rs 50,000 the government has prescribed graded relief as follows- loans between Rs 50,001 and Rs 60,000- waiver of Rs 40,000; Rs 60,001–70,000 — Rs 30,000; Rs 70,001–80,000 — Rs 20,000; Rs 80,001–1,00,000 — Rs 10,000; and loans above Rs 1,00,000 — relief of Rs 5,000. Officials said the decision will require additional expenditure of Rs 2,044.46 crore from the state exchequer.

The government framed the relief as both a fulfilment of election promises and an immediate measure to ease rural distress. The waiver only covers loans obtained from cooperative banks during the window between May 1, 2025 and February 28, 2026. Authorities will implement the scheme through cooperative banks and state agencies tasked with beneficiary identification and operational coordination.