CHENNAI/NAGAPATTINAM: Following requests from various farmers’ associations, Chief Minister C Joseph Vijay on Monday announced full waiver of cooperative farm loans up to Rs 75,000.
As per the announcement, cooperative farm loans up to Rs 75,000 will now be provided 100% waiver, loans between Rs 75,000 and Rs 1 lakh will receive up to Rs 75,000 waiver, and loans above Rs 1 lakh will receive a maximum waiver of Rs 35,000. In all, 2.38 lakh farmers will receive waiver of Rs 40,000 each. The revised proposal will entail an additional outgo of Rs 953.06 crore for the state exchequer. The government will, in total, waive loans worth Rs 6,220 crore for 13.34 lakh farmers.
Making the announcement under Rule 110 of the Tamil Nadu Assembly, the CM said that, owing to an RBI directive issued on November 28 last year, the government was required to settle the entire amount with cooperative banks within 45 to 60 days.
In contrast, the loan waiver announced by the AIADMK government in 2021 was repaid in 12 instalments by the AIADMK and DMK governments, he said. Vijay further said that loans totalling Rs 5,267 crore had been cleared for 13.34 lakh farmers as of July 31.
Farmers’ organisations criticised the expanded cooperative crop loan waiver, calling it “a hollow announcement”. Stating that the government failed to meet the assurances given to farmers, they said the latest waiver would benefit only 2.38 lakh farmers, while around 7.40 lakh small and marginal farmers would continue to remain in debt without a full waiver.
TN Farmers’ Association general secretary PS Masilamani said the government had “again disappointed farmers” despite months of protests and talks with ministers.
‘Addl waiver not enough’
Farmers had temporarily suspended their protests after being assured that their demand for an enhanced waiver would be considered. The latest announcement has eroded the trust of both farmers and their leaders, he said, warning that farmers’ organisations may be forced to hold a statewide protest across all districts.
Meanwhile, PMK chief Anbumani Ramadoss said the additional farm loan waiver was not enough and it would add only about Rs 900 crore to the earlier Rs 5,900 crore loan waiver. Speaking to reporters in Chennai, he demanded complete waiver of cooperative bank loans for farmers owning up to five acres and a 50% waiver for those owning five to 10 acres.
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