TN government announces crop loan waiver for farmers in Salem, Namakkal districts


Crop loans in the amount of Rs 501.69 crore given to 51,017 farmers in Salem and Namakkal districts in Tamil Nadu will be canceled to allow them to qualify for new loans to grow crops, said on Friday. the Minister of State Cooperatives, I Periyasamy, and assured that appropriate measures would be taken to prevent any recurrence of irregularities in the future.

Irregularities in the disbursement of loans to farmers in the two districts, in violation of the standards set by the state-level technical committee for the disbursement of loans and disproportionate to their land, were brought to light during the a field survey carried out by the cooperative department.

“In January 2021, approximately 1,833 farmers in Salem and Namakkal districts received waiver certificates for harvest loans taken out while waiver certificates were not provided to 51,017 ryots due to irregularities.” , informed the minister.

Out of a target for crop loans worth Rs 11,000 crore to state farmers set for 2020-21, the target for Salem and Namakkal has been set at Rs 746 crore and Rs 534 crore respectively. . But only Rs 614.92 crore and Rs 502.62 crore respectively were achieved for the two districts.

“Although maize and tapioca are the main crops, the loan amount for these two crops was less (compared to other crops). Farmers in these two districts provided a self-declaration that they grew turmeric and bananas and were out of proportion to their land to claim the benefits. This was revealed during the investigation on the ground ”, declared the Minister.

When the waiver of the agricultural loan was announced in January 2021, a total of 1,833 farmers in Salem and Namakkal districts received the waiver certificates and 51,017 people were excluded due to the irregularities. Following a representation of farmers from the two districts, Chief Minister MK Stalin, considering the interests of farmers and farmers, agreed to forgo their loans to pave the way for new loans.

“About 51,017 farmers would benefit from this gesture. In addition, appropriate precautionary measures will be taken to avoid any irregularities in the future, ”said the Minister.


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