Chennai: Tamil Nadu Chief Minister C. Joseph Vijay has announced a major farm loan waiver scheme aimed at supporting farmers facing financial difficulties across the state. The announcement was made during a government review meeting in Chennai, where officials discussed the growing concerns of farmers struggling with rising cultivation costs and loan burdens.
Under the new scheme, marginal farmers who have crop loan debts of less than Rs 50,000 through cooperative banks will receive a complete waiver of their outstanding loans. The government also announced that small farmers would receive a 50 percent waiver on eligible loans, while larger farmers would be provided financial assistance of Rs 5,000 each.
State government officials said the relief package is expected to benefit more than 14 lakh farmers across Tamil Nadu. The total cost of the scheme is estimated to be around Rs 2,044 crore. Authorities stated that the loans covered under the scheme include crop loans taken from cooperative banking institutions between May 2025 and February 2026.
The government described the move as an important step to protect farmers who have been affected by unstable weather conditions, increasing fertilizer and fuel prices, and fluctuating market returns. Agriculture officials said many farmers had been demanding immediate relief after facing repeated financial pressure during recent cultivation seasons.
The announcement is being seen as one of the first major welfare decisions taken by the government led by Vijay’s party, Tamilaga Vettri Kazhagam, after coming to power in the 2026 Tamil Nadu Assembly election. During the election campaign, the party had strongly promised support for farmers and assured debt relief measures for agricultural communities.
However, the announcement has also led to criticism from opposition parties. Edappadi K. Palaniswami criticised the government, saying the original election promise had been diluted. He argued that the ruling party had earlier promised a full waiver for all farmers owning less than five acres of land, but the final scheme introduced a loan limit instead of a land ownership criterion.
Palaniswami described the revised conditions as unfair to several farmers who expected broader support after the elections. He also compared the current scheme with earlier farm loan waivers introduced during the previous AIADMK government.
Senior opposition leader Udhayanidhi Stalin also criticised the announcement and accused the government of failing to fully honour its campaign promises. He said many farmers would feel disappointed because they had expected a complete waiver for a larger section of the farming community.
Despite the criticism, some farmer welfare groups and political leaders welcomed the decision. S. Ramadoss said the scheme would provide immediate relief to many struggling farmers and reduce financial stress in rural areas. At the same time, he urged the government to consider additional measures for farmers affected by crop losses and natural disasters.
Officials said detailed implementation guidelines would soon be released. Cooperative banks across the state are expected to begin verifying eligible loan accounts before the waiver process officially starts.
Farmer organisations are now waiting for further clarification on how quickly the benefits will reach affected families. Many farmers have expressed hope that the relief package will help them prepare for the upcoming cultivation season without the fear of mounting debts.