Tamil Nadu to fully waive co-operative crop loans up to ₹75,000
Tamil Nadu will fully waive co-operative crop loans of up to ₹75,000 for 1.443 million farmers. The measure is expected to cost the state about ₹5,932 crore and is aimed at supporting borrowing ahead of the next cultivation season.
The government of Tamil Nadu announced on June 16, 2026 that it will fully waive co-operative crop loans of up to ₹75,000. The decision applies to loans taken through co-operative banks between May 1, 2025 and February 28, 2026. Chief Minister C. Joseph Vijay announced the measure after a review meeting with ministers and senior officials at the state secretariat.
According to the government, the waiver will benefit 14.43 lakh farmers, or 1.443 million farm households. The additional fiscal cost is estimated at ₹5,932 crore. Officials described the move as a major relief package for growers who depend on institutional seasonal credit for cultivation.
The state also clarified how larger borrowers will be treated. Farmers who took crop loans above ₹75,000 will still receive support, but their waiver will be capped at ₹35,000. That keeps the scheme focused on broad-based relief while extending at least partial assistance beyond the main ceiling.
The announcement revises a previous decision made last month. At that time, Tamil Nadu had approved a waiver only up to ₹50,000 for small and marginal farmers using co-operative bank credit. After representations from farmers, the state raised the ceiling to ₹75,000 and widened the relief.
In its release, the government referred to the Reserve Bank of India’s model operating procedures for public loan waiver schemes, which require the full waiver amount to be disbursed within 45 to 60 days. Despite pressure on public finances, the state said it would absorb nearly ₹6,000 crore in obligations so that farmers are not blocked from the next round of crop finance.
Tamil Nadu says the measure should help farmers who want to secure fresh loans for the coming cultivation season. Beyond immediate debt relief, the policy is meant to preserve working capital in farm operations that rely on co-operative banks to buy seed, fertilizer and other essential inputs before sowing.