In a way, the state has retooled its approach to farm debt. Chief Minister C. Joseph Vijay made the call on 16 June 2026 to offer a blanket waiver on all debts up to Rs 75,000. It’s a move that will touch 14.43 lakh farmers at a cost of Rs 5,932.23 crore, covering any loans from May 1, 2025 through 28 February 2026.
What changed and why
The government has done away with the graded waiver it put out only a month ago and opened the door to all farmers, no matter how much land they have. You can put it down to some pushback: the original plan from 25 May, right after TVK’s win, was to give small and marginal farmers as much as Rs 50,000 off, but large ones would only be looking at Rs 5,000.
That was not well received by some in the farming community or the Opposition. So after a sit-down with his ministers and officials on 15 June, the state has gone with something more straightforward – a universal cap and a one-off add-on for the bigger loans, as per the official word.
This is what you are looking at now:
– A full write-off of up to Rs 75,000 for everyone
– An extra Rs 35,000 if your loan is over that mark
– Applies to loans between 1 May 2025 and 28 February 2026
– 14.43 lakh farmers to be covered, at a tab of Rs 5,932.23 crore
Who benefits and by how much
If you look at the numbers, 8,33,773 of the marginal lot, 5,16,183 small-time and 93,548 of the larger farmers are in line for waivers. We’re talking about Rs 3,599.67 crore, Rs 1,995.42 crore and Rs 337.15 crore, in that order.
By putting a firm line at Rs 75,000, the scheme is less of a head-scratcher and a plain message to those who borrow from co-ops. And if you have a loan that runs over Rs 75,000, the state has put in a further Rs 35,000 for you.
The earlier graded plan at a glance
Before they pulled the plug on it, the rules were this: a marginal farmer with a bill under Rs 50,000 would be made whole, a small one in the same bracket would have half of it wiped. For the top end, anything over a lakh would see a Rs 5,000 break.
There were also some in-betweens. If you were in the Rs 60,001 to 70,000 range, you’d be given Rs 30,000. The 80,001 to 1 lakh tier was worth Rs 10,000, while the 70,001 to 80,000 group got Rs 20,000. For 50,001 to 60,000, the relief was Rs 40,000.
Implementation and timelines
They are following the RBI’s book on how to handle a government waiver, which means you should see the money in 45 to 60 days. The administration is touting this as the kind of support you want to have in hand before you go into the field.
There is some fiscal reality to it, too. The note from the top says that ‘considering the current financial position’ of the state, the CM has put his stamp on a roughly Rs 6,000 crore waiver for the 14.43 lakh who fit the bill.
Political and on-ground implications
You could say this quells the noise. Udhayanidhi Stalin, for one, had been saying the government was misleading farmers, and some of the agri groups wanted a re-think. This new version is meant to put those issues to rest.
For the co-ops and the people they lend to, the clean lines should make for a faster process. Now it comes down to how well and how fast they can put it in motion, especially with the 45 to 60 day window in mind.
Key dates and scope
Some things to keep in mind:
– The review on 15 June
– 16 June 2026 for the announcement
– The window for the loans: 1 May 2025 to 28 February 2026
