Chennai: Tamil Nadu Chief Minister C Joseph Vijay on Monday announced an expanded waiver scheme for cooperative farm loans, with loans of up to ₹75,000 now eligible for a 100 per cent waiver.
He also announced a waiver of up to ₹75,000 for cooperative farm loans ranging between ₹75,000 and ₹1 lakh.
Making the announcement under Rule 110 in the Assembly, Vijay said agriculture was the backbone of the state and that the country's prosperity depended on supporting farmers.
Despite the state's financial constraints, his government had decided to provide additional relief of ₹953.06 crore to farmers, he said.
Vijay said the government had earlier waived agricultural loans of up to ₹50,000 within 15 days of taking office in May. The relief was subsequently expanded to provide full waivers for loans up to ₹75,000, while loans exceeding ₹75,000 received a waiver of ₹35,000. The earlier measures benefited more than 14.44 lakh farmers.
Following consultations with agricultural unions on August 7, 2026, the government decided to extend further relief despite financial constraints and Reserve Bank of India guidelines requiring rapid settlements with cooperative banks, the chief minister said.
Under the revised scheme, cooperative farm loans up to ₹75,000 will receive a 100 per cent waiver. Loans between ₹75,000 and ₹1 lakh will receive waivers of up to ₹75,000, while loans above ₹1 lakh will be eligible for a maximum waiver of ₹35,000.
"This initiative will provide additional support to over 1.38 lakh farmers, representing an additional financial commitment of approximately ₹953.06 crore by the government, with a total waiver amount reaching ₹6,220 crore for 13.34 lakh farmers," the chief minister said.