‘Amma’ of all welfare schemes: EPS waives Rs 12,110-crore worth farm loans

The Chief Minister assured that a government order for this waiver of crop loans would be issued and the financial allocation for it would be made in the interim budget for 2021-22.
Agricultural and horticultural crops which were ready for harvest were damaged. ( File photo | M K Ashok Kumar, EPS)
Agricultural and horticultural crops which were ready for harvest were damaged. ( File photo | M K Ashok Kumar, EPS)

CHENNAI: In a huge relief for cash-strapped farmers, Chief Minister Edappadi K Palaniswami on Friday announced that crop loans to the tune of Rs 12,110 crore, availed by as many as 16.43 lakh farmers through cooperative banks, would be waived.

After a year of the pandemic, the farmers were subsequently hit hard by two cyclones — Nivar and Burevi — and the non-seasonal rains in January. Palaniswami, making the announcement under Rule 110 during the zero hour in the State Assembly, assured that the crop loan waiver would be enforced immediately by issuing a Government Order (GO) and the financial allocation for the same would be made in the Interim Budget for 2021-22. 

“This announcement has facilitated farmers in continuing cultivation works without any difficulty in the forthcoming year,” the Chief Minister said. Recalling the DMK’s promise, made during the 2019 Lok Sabha elections, that they would waive off farmer loans, Palaniswami said that they had forgotten that promise after winning seats. 

“Even during the 2006 Assembly elections, the DMK promised to provide two acres of land each to landless farmers, but they could not fulfil that, he said. “This has been their routine in every election. However, the people know very well that the AIADMK always walks the talk, and fulfils election promises without fail,” added Palaniswami.

Delta farmers upbeat over crop loan waiver

Referring to the numerous schemes being implemented for agriculture and allied sectors, such as animal husbandry and fisheries, the Chief Minister said: “Whenever farmers have faced difficulties, the successive AIADMK governments have been at the forefront to alleviate their issues. After assuming office in May 2016, former Chief Minister J Jayalalithaa had waived crop loans to the tune of Rs 5,318.73 crore to benefit 12.02 lakh farmers.

File photo of a farmland in Tirunelveli
File photo of a farmland in Tirunelveli

Later, in 2017, the government had also disbursed Rs 2,247 crore as drought relief to the farmers.” Citing the agricultural loss incurred due to the pandemic, the cyclones and the non-seasonal rains, Palaniswami said, “With a view to help them cope with this difficult situation, the State government had extended Rs 1,717 crore as relief assistance (input subsidy) to 16.43 lakh farmers, and the amount has been credited to their accounts directly.” “Though this measure had helped farmers to a significant extent, several farmers’ associations have been demanding that their crop loans be waived off, too, considering huge damages caused to standing crops.

So, the government has decided to waive the loans,” he said. Just as the Chief Minister resumed his seat after announcing the waiver, senior ministers thanked Palaniswami for the timely help to farmers. Following this, almost all MLAs made a beeline to his seat and thanked him for the announcement with folded hands. Significantly, most of them touched his feet, seeking his blessings. Delta farmers have welcomed the announcement. KA Koothalingam, a farmer from Pallathur near Pattukkottai in Thanjavur, said: “This waiver would be of great help to the farmers whose crops were damaged due to the non-seasonal rains last month.”

Koothalingam himself has an outstanding loan amount of Rs 1 lakh taken from a cooperative bank. NV Kannan, a farmer from Rayamundanpatti and the district secretary of Tamil Nadu Farmers Association, said that it was a long-pending demand of the farmers. He added, for the last two years, cooperative banks were not advancing pure crop loans based on land documents, and were issuing it only with gold jewels given as collateral in addition to the documents. “Many farmers then sought loans from scheduled commercial banks. The government should also come forward for arranging a waiver of these loans as well,” he added. PS Masilamani, a farmer from Tiruvarur and State deputy general secretary of Tamil Nadu Farmers Association echoes the sentiment.

He said that the State should impress upon the Centre to waive loans taken from these banks or it should come forward to pay back these banks on behalf of the farmers. Farmer leaders in Tiruchy also expressed their happiness over the move. They said that it came at a much needed time for the farmers. “We also wish that the Chief Minister take action to ensure the right Minimum Support Price (MSP). Crop loan waiver is just timely relief and is not a permanent solution,” said Veerasekaran, spokesperson of Bharathiya Kisan Sangam. Aiyalai Sivasuriyan, Tiruchy district secretary of Tamil Nadu Vivasayigal Sangam also welcomed the announcement and appealed that it be extended to loans taken from nationalized banks as well.

In Dharmapuri, farmers burst crackers and celebrated the announcement. They also distributed sweets and chanted slogans thanking the AIADMK government. Farmers’ associations across the State, too, have hailed the announcement. Expressing gratitude to the Chief Minister, P Kandhasamy, general secretary of farmers association, said the announcement came at the right time. “We were asking for waiver of both co-operative and commercial bank loans. Waiver of loan from cooperative banks would bring us a relief. The government should consider waiving loan availed from nationalised banks as well.” S Palanisamy, president of Tamilaga Vivasayigal Sangam, said that the farmers’ demand has been accepted by the State government. “We are thankful to the Chief Minister for taking the decision. We request him to drop cases registered against farmers for protesting seeking repeal of farm laws.”

(With inputs from Coimbatore, Tiruchy, Thanjavur, Dharmapuri)

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