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Farmers in several districts of Tamil Nadu have launched protests demanding that the Tamilaga Vetri Kazhagam (TVK) government fulfil its election promise of waiving crop loans, alleging that the commitment made during the campaign has not been implemented in full.
On Monday, June 1, more than 500 farmers staged a protest in Erode under the banner of the Tamil Nadu Farmers Protection Association, led by Easan Murugasamy. Speaking to The Hindu, Murugasamy said farmers across the state were struggling under mounting debt amid rising cultivation costs, fluctuating market prices, and repeated weather-related losses.
During the election campaign, Chief Minister C Joseph Vijay had promised a complete waiver of crop loans for farmers owning less than five acres of land and a 50% waiver for those owning more than five acres. However, the government later announced a waiver of only Rs 5,000 for loans above Rs 1 lakh, along with a 50% waiver for eligible small farmers. Farmer groups said the announced relief fell short of the promise made to them. “The waiver structure is unacceptable. We want the government to implement the promise made during the election campaign in full,” Murugasamy told The Hindu.
In Trichy, farmers widened their protest beyond the loan waiver issue, expressing concern over revised guidelines issued by the National Bank for Agriculture and Rural Development (NABARD). Under the revised regulations, which came into effect in November 2025, state governments cannot waive agricultural loans without NABARD’s approval. If a waiver is announced, the state is required to reimburse the waived amount to the bank within around 60 days. Farmer organisations said these conditions have made large-scale loan waivers more difficult to implement.
In 2006, the DMK government led by M Karunanidhi announced a waiver of agricultural loans for all farmers regardless of landholding size, a move that reportedly amounted to around Rs 7,000 crore.
A decade later, in 2016, the AIADMK government under Edappadi K Palaniswami announced a farm loan waiver worth Rs 12,110 crore, though the process was not completed during its tenure. After returning to power in 2021, the DMK government led by MK Stalin completed the waiver.
The DMK government also later waived dues amounting to around Rs 21,000 crore in line with RBI directions routed through NABARD.
Reportedly, revised NABARD regulations have created additional financial pressure on the newly formed TVK government and made it more difficult to deliver on its poll promise of a comprehensive loan waiver. The government’s decision to announce a limited waiver of Rs 2,044 crore, with eligibility based on landholding categories, has since become a subject of debate among farmer groups.
In Ariyalur, farmers boycotted a grievance redressal meeting to press for both a full crop loan waiver and action on the proposed Mekedatu dam project.
Farmer organisations across districts have urged the government to announce a comprehensive crop loan waiver scheme at the earliest, saying such relief is essential for small and marginal farmers struggling to sustain agricultural activity. They have also warned that protests will intensify if their demands are not addressed.
This article was written by a student interning with TNM