By Soniya:
The Tamil Nadu government has announced a revised cooperative crop loan waiver scheme aimed at providing financial relief to farmers who borrowed from cooperative banks between May 1, 2025, and February 28, 2026. Under the new policy, farmers with cooperative crop loans of up to ₹75,000 will receive a full loan waiver, while those with loans exceeding this amount will be eligible for a partial waiver of ₹35,000.
The scheme is expected to benefit approximately 14.43 lakh farmers across the state and will impose an estimated fiscal burden of ₹5,932.23 crore on the government. Among the beneficiaries, 8.33 lakh marginal farmers will receive waivers worth ₹3,599.67 crore, while 5.16 lakh small farmers will benefit from relief amounting to ₹1,995.42 crore. Around 93,548 large farmers will also receive assistance under the revised scheme.
Tamil Nadu’s extensive cooperative credit network, comprising primary agricultural cooperative banks, district central cooperative banks, and the Tamil Nadu State Apex Cooperative Bank, plays a crucial role in providing short-term crop loans for cultivation expenses. The revised waiver expands benefits beyond the earlier proposal announced in May 2026, extending support to all eligible farmers under the cooperative loan category.
The initiative is expected to reduce farmers’ debt burden, strengthen rural livelihoods, and provide much-needed support to the agricultural sector.
