Tamil Nadu Chief Minister C Joseph Vijay announced a comprehensive farm loan waiver scheme on Monday, providing 100% waiver for cooperative farm loans up to ₹75,000. According to reports from Business Standard, the CM also announced a waiver up to ₹75,000 for loans ranging between ₹75,000 and ₹1 lakh, and a maximum waiver of ₹35,000 for loans above ₹1 lakh. This announcement was made under Rule 110 in the Assembly, building upon the government's previous agricultural loan relief measures.
The additional relief package will benefit over 1.38 lakh farmers, representing an additional financial commitment of approximately ₹953.06 crore by the government, as reported by Business Standard. Combined with previous waivers, the total waiver amount will reach ₹6,220 crore for 13.34 lakh farmers. The CM emphasized that despite the state facing financial constraints, his government decided to extend additional support to farmers, highlighting agriculture's role as the backbone of the state's prosperity.
According to the CM's announcement, the government previously waived agricultural loans up to ₹50,000 within 15 days of taking office in May, which was later expanded to provide full waivers for loans up to ₹75,000, and a ₹35,000 waiver for loans exceeding ₹75,000. As reported by Business Standard, following consultations with agricultural unions on August 7, 2026, the government decided to provide additional relief despite current financial constraints and Reserve Bank of India guidelines that required rapid settlements with cooperative banks. The latest announcement specifically benefits 2,38,264 farmers who have crop loans between ₹75,000 and ₹1 lakh, with these farmers receiving an additional waiver of up to ₹40,000 over and above previous relief.
The CM emphasized that agriculture is the backbone of the state and that the prosperity of the nation depended on supporting farmers, as reported by Business Standard. He stated that despite the state facing financial constrains, his government decided to extend additional support of ₹953.06 crore to farmers, demonstrating the government's commitment to agricultural sector development and farmer welfare initiatives. Vijay highlighted that agriculture transcended distinctions of caste, creed, race and language, emphasizing that agricultural produce from one part of the world often meets the food requirements of people in another.
