CHENNAI, 17 August 2026: Tamil Nadu Chief Minister C. Joseph Vijay on Monday announced additional relief for farmers by expanding the state's cooperative agricultural loan waiver scheme, with the government committing an additional INR 953.06 crore to support more than 1.38 lakh farmers.

Making the announcement under Rule 110 in the Tamil Nadu Assembly, Vijay said agriculture remains the backbone of the state economy and that supporting farmers is essential to ensuring broader economic prosperity.

The latest decision expands an earlier farm-loan waiver announced shortly after the TVK government assumed office in May. Vijay had initially announced a waiver for agricultural cooperative loans of up to INR 50,000, which was subsequently expanded to cover loans up to INR 75,000 along with partial relief for larger loans.

New farm loan waiver structure

Under the revised arrangement, cooperative agricultural loans will receive relief according to the following structure:

Cooperative farm loan    Waiver
Up to INR 75,000    100% waiver
Above INR 75,000 up to ₹1 lakh    Up to INR 75,000 waiver
Above INR 1 lakh    Maximum INR 35,000 waiver

The government estimates that the expanded relief will provide additional support to more than 1.38 lakh farmers.

Vijay said the additional commitment of INR 953.06 crore would take the total loan waiver amount to around INR 6,220 crore, benefiting approximately 13.34 lakh farmers.

Government cites financial constraints

The Chief Minister said the decision had been taken despite the state's financial constraints.

He also referred to consultations held with agricultural organisations on August 7, 2026, following which the government decided to provide further relief to cooperative-bank borrowers.

According to Vijay, the government also had to take into account Reserve Bank of India guidelines concerning settlements with cooperative banks while designing the expanded relief package.

Earlier waiver benefited more than 14 lakh farmers

The state government had previously announced a waiver of agricultural loans up to INR 50,000 shortly after taking office in May. The benefit was later expanded, with full waiver for loans up to ₹75,000 and a ₹35,000 waiver for loans exceeding INR 75,000.

That earlier package benefited more than 14.44 lakh farmers, according to the Chief Minister.

The latest announcement further restructures the relief available to different categories of cooperative farm borrowers.

Focus on farmers and rural economy

The expanded waiver comes as Tamil Nadu seeks to strengthen support for its agricultural sector amid concerns over farm incomes, input costs and rural financial stress.

By providing direct relief on cooperative agricultural loans, the government expects eligible farmers to reduce their outstanding debt burden and improve their financial capacity.

The announcement also signals that farm-sector welfare and rural credit relief are becoming significant components of the new Tamil Nadu government's policy agenda.

Vijay reiterated that agriculture is central to the state's economic foundation and that government intervention should ensure farmers receive adequate support during periods of financial pressure.