TIRUCHY: Farmers have appealed to the state government to revise the Scale of Finance fixed (crop loan limit) for 2026-27, citing the rise in input cost, such as fertilizers, and fuel.
According to sources, Scale of Finance refers to the crop loan limit determined by the government for each crop based on the average cost of cultivation per acre.
The calculation takes into account various factors including cost of seeds, fertilizers, pesticides, labour charges, irrigation expenses, fuel and the use of farm machinery. Farmers can avail of crop loans up to the prescribed limit through nationalised banks and cooperative societies. Crop loans are available only to farmers holding Kisan Credit Card (KCC).
The Scale of Finance for 2026-27 arrived at the District Level Technical Committee (DLTC) meetings were held across the state in August 2025. Representatives of farmers associations, collectors, and senior officials from agriculture and related departments participated in these meetings. Crop loan limit was recommended and sent to the State Level Technical Committee (SLTC), which later finalized it (see table).
Recent developments such as the West Asia crisis has led to a four-fold hike in fuel price, which in turn has significantly pushed up agricultural production costs, said Swamimalai S Vimalnathan, Secretary of Tamil Nadu Cauvery Farmers Protection Association.
“The price of chemical fertilizers has also risen sharply, putting farmers under severe financial pressure. Truck owners have announced that freight charges will increase by 25 % because of the rise in diesel prices. This will nudge owners of tractors, transplanting machines, harvesters, threshers and straw-baling machines also to revise the rent considerably. So, there is an urgent need to raise the crop loan ceiling,” Vimalnathan said.
L Anburaj, a farmer from Anthanallur in Tiruchy said farm labourers have also increased their wages. “The state should take these rising cultivation costs into account and revise crop loan limits for all crops,” he said. “Crop loans to be provided to farmers that should commensurate the cost of production per acre. If banks do not provide required loans, farmers will be forced to borrow money from private lenders at high interest rates,” Anburaj added.