Tamil Nadu Government Promises Rs 75,000 Crop Loan Waiver for Farmers

Talks Held

The Tamil Nadu government has promised to waive up to Rs 75,000 of crop loans for farmers who borrowed more than Rs 1 lakh from cooperative banks. Ministers held talks at the Secretariat in Chennai with representatives from 50 agricultural associations after farmers staged protests demanding a complete loan waiver.

Association Demands

Farmers had earlier staged protests in Trichy demanding the full waiver of crop loans taken by small and farmer groups, and asking the government to remove the rule restricting the waiver to only one person per family. Tamil Nadu All Farmers Associations Coordination Committee President P.R. Pandian stated that ministers assured them their demands would be taken to the Chief Minister, leading to their decision to call off the protest. However, Cauvery Delta Irrigation Farmers Association Coordinator Ilankeeran stated that full agreement was not reached and demanded a complete waiver. Tamil Nadu Farmers Association Founder Eesan Murugasamy noted that the government has only fulfilled 50 percent of its promise, with further discussions planned.

Context

Crop loan waivers are frequently demanded by farmers in Tamil Nadu facing financial distress due to drought, poor crop yields, or market price drops. Cooperative banks play a central role in providing credit to rural agricultural communities in the state. State governments often review such debt relief demands to ease pressure on agrarian livelihoods.