CHENNAI: Following demands from farmers’ associations and political parties, Chief Minister C Joseph Vijay on Tuesday announced a revised crop loan waiver scheme under which all marginal, small and large farmers who availed crop loans of up to Rs 75,000 from cooperative banks will receive a full waiver. Farmers with loans above Rs 75,000 will be eligible for a waiver of Rs 35,000 each.
The scheme will benefit 14,43,504 farmers who obtained crop loans from cooperative banks between May 1 last year and February 28 this year.
Earlier, on May 25, the government had announced a waiver of loans up to Rs 50,000 for marginal farmers, a 50 per cent waiver on loans up to Rs 50,000 for small farmers, and a waiver of Rs 5,000 for large farmers with crop loans up to Rs. 1 lakh.
The revised scheme was announced after a section of farmers protested, demanding a complete waiver of crop loans for holdings up to five acres and a 50 per cent waiver for farmers owning more than five acres, in line with the TVK election manifesto.
The financial burden on the state exchequer will rise from Rs 2,044.46 crore to Rs 5,932.23 crore. The number of beneficiaries has increased from about 14.22 lakh under the earlier scheme to 14.43 lakh.
According to an official statement, crop loans amounting to Rs 3,058.06 crore availed by 6,22,313 farmers with borrowings of up to Rs 75,000 will be waived in full. The beneficiaries include 5.22 lakh marginal farmers, 94,427 small farmers and 4,753 large farmers.
In addition, around 8.21 lakh farmers with loans exceeding Rs 75,000 will receive a waiver of Rs 35,000 each, covering loans worth Rs. 2,874.17 crore. These beneficiaries include about 3.10 lakh marginal farmers, 4.21 lakh small farmers and 88,795 large farmers.
In total, crop loans amounting to Rs 5,932.23 crore taken by 14,43,504 farmers will be waived under the scheme.
The government said the decision was taken after considering the state's financial situation. It also noted that, in accordance with Reserve Bank of India guidelines, dues payable to cooperative banks under the waiver scheme would be settled by the State government within 45 to 60 days.
The decision was taken following a review meeting chaired by the Chief Minister at the Secretariat on Monday. Ministers from the Agriculture and Farmers Welfare, Cooperation and Finance departments, along with senior officials, attended the meeting.