Vijay Govt Revises Crop Loan Waiver Scheme; Hikes Crop Loan Waiver Ceiling to ₹75,000

Tamil Chief Minister C Joseph Vijay has announced a substantially revised crop loan waiver scheme on Tuesday. The updated policy aligns more closely with the TVK election manifesto, addressing initial dissatisfaction after a section of farmers protested against the government's previous relief caps.

The revamped scheme significantly increases both the scope of relief and the financial commitment from the state. Under the new guidelines, all marginal, small, and large farmers who availed crop loans of up to ₹75,000 from cooperative banks will receive a full waiver. For those with outstanding loans exceeding ₹75,000, a uniform waiver of ₹35,000 per farmer will be applied.

This decision marks a notable shift from the initial package announced on May 25, which limited full waivers to loans up to ₹50,000 solely for marginal farmers, while offering tiered, partial assistance to small and large landholders.

Breakdown of Beneficiaries

According to the official statement, the total expenditure of ₹5,932.23 crore is divided into two major operational categories:

Full Waivers (Loans up to ₹75,000): A total of ₹3,058.06 crore will be waived for 6,22,313 farmers. This group comprises 5.22 lakh marginal farmers, 94,427 small farmers, and 4,753 large farmers.

Partial Waivers (Loans above ₹75,000): A flat relief of ₹35,000 each will be extended to 8,21,191 farmers, accounting for ₹2,874.17 crore. This includes roughly 3.10 lakh marginal, 4.21 lakh small, and 88,795 large farmers.

The final decision was formalized following a comprehensive review meeting chaired by the Chief Minister at the Secretariat, which included ministers and senior officials from the Agriculture, Cooperation, and Finance departments.

The government stated that the expanded financial commitment was approved after a careful assessment of the state's current fiscal position. Furthermore, in compliance with Reserve Bank of India (RBI) guidelines, the State government has committed to settling all corresponding dues payable to the cooperative banks within a 45 to 60-day window.