Farmers demand Maharashtra model of crop loan waiver
The Tamil Nadu Cauvery Farmers Protection Association is urging the state government to implement a crop loan waiver scheme modeled after Maharashtra's policy. The proposal includes loan forgiveness for specific periods and financial incentives for farmers who maintain regular repayment schedules.
Why it matters
Agricultural debt relief is a critical economic issue in India, directly impacting the financial stability of rural populations and state fiscal policy.
The Tamil Nadu Cauvery Farmers Protection Association has exhorted the Tamilaga Vettri Kazhagam-led Tamil Nadu government to adopt the Maharashtra government model of crop loan waiver scheme for the benefit of Tamil Nadu farmers.
In a memorandum to Chief Minister C. Joseph Vijay, association secretary Sundara Vimalanathan pointed out that ₹410 crore availed as crop loans by farmers during the 2016-21 period had been converted as medium term crop loan. But these loans were not waived either by the previous DMK government or by the earlier AIADMK regime.
While urging Chief Minster Joseph Vijay to waive this medium term crop loan, the association secretary urged the government to adopt the ₹36,585-crore crop loan waiver scheme announced by the Maharashtra government wherein ₹50,000 had been announced as an incentive to farmers who paid equated monthly instalments regularly.
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