Farm loans availed from cooperative institutions to the tune of Rs. 12,110.74 crore by 16,43,347 farmers in Tamil Nadu are being waived
Launching the crop loan waiver scheme, Tamil Nadu Chief Minister Edappadi K. Palaniswami on Saturday presented the loan waiver certificates to nine farmers at the Secretariat in Chennai.
On February 5, he had announced that farm loans availed from cooperative institutions to the tune of ₹12,110.74 crore by 16,43,347 farmers in Tamil Nadu would be waived. He made the suo motu announcement in the Legislative Assembly under Rule 110 of the House.
An official release cited that a Government Order was issued by the Food, Co-operation and Consumer Protection Department on February 8 stating that the short-term crop loans of 16.43 lakh farmers would be waived and funds would be transferred to the co-operative banks.
With the COVID-19 pandemic affecting the economy in 2020, the farmers had also suffered heavy losses due to the two cyclones – Nivar and Burevi – in Tamil Nadu, resulting in farmer associations demanding loan waivers.
The guidelines released said that the loans, interest and any penalty pending until January 31 will be waived along with collaterals and no action should be taken to retrieve these loans. The farmers, who receive the loan waivers, would be eligible to apply for new loans.
Deputy Chief Minister O. Panneerselvam, Minister for Co-operation, Sellur K. Raju, Higher Education and Agriculture Minister, K.P. Anbalagan and other officials were present.