CHENNAI/THANJAVUR : Chief Minister C Joseph Vijay on Monday announced a complete waiver of crop loans up to Rs 50,000 availed of by marginal farmers from cooperative banks. He also announced a 50% waiver for small farmers on loans up to Rs 50,000. In addition, large farmers who had availed of crop loans up to Rs 1 lakh would receive a waiver of Rs 5,000 each.
A total of 14,22,555 farmers who obtained crop loans from cooperative banks between May 1 last year and February 28 this year would benefit from it. The decision would result in an additional expenditure of Rs 2,044.46 crore for the state.
The announcement was made following a review meeting chaired by the CM at the secretariat. Agriculture and Farmers Welfare Minister R Vinoth, Cooperation Minister V Gandhiraj, Finance Minister N Marie Wilson and senior officials participated in the meeting.
According to an official note, marginal farmers with loans between Rs 50,000 and Rs 60,000 would receive a waiver of Rs 40,000, while those with loans between Rs 60,000 and Rs 70,000 would get Rs 30,000 waived. Farmers with loans between Rs 70,000 and Rs 80,000 would receive a waiver of Rs 20,000.
Similarly, marginal farmers with loans between Rs 80,000 and Rs 1 lakh would receive a waiver of Rs 10,000, while those with loans above Rs 1 lakh would get Rs 5,000 waived.
For small farmers, loans between Rs 50,000 and Rs 60,000 would qualify for a waiver of Rs 20,000, while loans between Rs 60,000 and Rs 70,000, a waiver of Rs 15,000. Loans between Rs 70,000 and Rs 80,000 would receive a waiver of Rs 10,000, while loans between Rs 80,000 and Rs 1 lakh would qualify for a waiver of Rs 5,000.
Meanwhile, farmers have expressed disappointment over the announcement and demanded a complete loan waiver without any riders.
Sami Natarjan, the state general secretary of TN farmers association, said the announcement made by the government on Monday contradicts the promise made by the TVK during the election campaign.
“This is not acceptable as the farmers’ indebtedness is high as the union government has not fixed a fair MSP. Hence, the TN government should reconsider and waive 100% loans for those with landholdings of five acres or less and 50% loans for those with more than five acres of landholdings,” said Natarajan.
