Tamil Nadu CM Vijay raises crop loan waiver to Rs 75,000

Tamil Nadu Chief Minister C Joseph Vijay on Monday announced a full waiver of cooperative farm loans up to Rs 75,000, revising his government's earlier cap of Rs 50,000. The announcement came on the 100th day of his government, during a speech in the Assembly under Rule 110.

Farmers with loans between Rs 75,000 and Rs 1 lakh will get a waiver of up to Rs 75,000, while those with loans exceeding Rs 1 lakh will continue to receive a maximum waiver of Rs 35,000. The Hindustan Times reports that 13.34 lakh farmers will benefit from the scheme. The News Minute adds that eligible farmers who had already received the earlier Rs 35,000 waiver can now receive an additional amount of up to Rs 40,000. The additional benefit will cover 2.38 lakh farmers at an extra cost of Rs 953.06 crore.

Vijay said the government has cleared crop loans worth Rs 5,267 crore for 13.34 lakh farmers as of July 31. He also referred to a Reserve Bank of India directive requiring the government to settle amounts with cooperative banks within 45 to 60 days. However, Pattali Makkal Katchi president Anbumani Ramadoss called the additional waiver inadequate and demanded a complete waiver for farmers owning up to five acres.