Madurai farmers in distress as cooperative banks issue notices for full crop loan repayment
Farmers in Madurai are facing financial distress after cooperative banks demanded full repayment of crop loans despite government promises of a waiver. Officials have stated that the waiver process is pending implementation, leaving farmers in a state of uncertainty regarding their debt obligations.
Why it matters
The situation underscores the gap between political campaign promises and the administrative reality of agricultural debt relief programs.
Farmers in Madurai district have expressed shock and dismay after receiving notices from primary agricultural cooperative banks demanding the immediate repayment of their crop loans in full, along with accumulated interest.
The directive has sparked widespread anxiety, as it ran contrary to expectations raised by the State government’s loan waiver announcements.
According to government policy declarations, crop loans up to ₹75,000 obtained by micro and small farmers across Tamil Nadu are slated for a complete waiver.
However, beneficiaries at the Poondi Primary Agricultural Cooperative Bank in Madurai—a prominent institution in the region—were recently served notices instructing them to clear their entire loan balances with interest calculated from the date of disbursement.
Bank officials have reportedly assured farmers that the eligible waiver amounts would be credited back to them only after the full dues are paid.
Farmers pointed out that the condition contradicted electoral promises.
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