Tiruchi: Although Chief Minister Vijay announced it in the Tamil Nadu Legislative Assembly two and a half months ago, no government order has yet been issued regarding crop loan waiver, leaving 2.38 lakh farmers unable to fully avail the waiver benefit.
In the announcement made by Chief Minister Vijay in the Tamil Nadu Legislative Assembly on August 17 under Rule 110, he said that after considering the demands of various farmers’ organizations across the state, crop loan waivers would be provided to protect farmers’ welfare even in a financially strained situation.
Accordingly, crop loans of up to Rs. 75,000 taken by small, marginal, and other farmers from cooperative banks will be waived in full, 100 percent. It was announced that those who have borrowed between Rs. 75,000 and Rs. 1 lakh will receive a waiver of up to Rs. 75,000, and those who have borrowed more than Rs. 1 lakh will receive a waiver of up to Rs. 35,000.
Through this, 2,38,264 farmers who have taken crop loans ranging from Rs. 75,000 to Rs. 1 lakh will be eligible for a waiver of up to Rs. 75,000, and there will also be an opportunity to receive an additional concession of up to Rs. 40,000 over and above the waiver amount already provided, the Chief Minister announced.
However, it is said that even after two and a half months since this announcement was issued, the government order has not yet been released. As a result, farmers are struggling without being able to fully benefit from the loan waiver.
Regarding this, some farmers told the daily Hindu Tamil Thisai: Crop loans taken by farmers from cooperative banks do not carry interest for up to one year. If the loan is repaid within a year, there is no need to pay interest.
However, if a year has passed, interest has to be paid. In this situation, farmers who have obtained crop loans ranging from Rs. 75,000 to Rs. 1 lakh are going to cooperative banks to repay the loan before the year ends so that it can be waived.
At that time, bank officials say that the government order regarding the loan waiver announced by the Chief Minister has not yet been issued, and therefore, a waiver of Rs. 75,000 cannot be granted.
They say that only Rs. 35,000 can currently be waived, and the remaining loan amount must be paid.
As a result, farmers who are waiting for the government order to be issued are unable to repay the loan in full.
Meanwhile, as a year has come to an end since crop loans were taken, a situation has arisen where the interest also has to be paid.
Once the government issues an announcement regarding the rise in the prices of fertilizers and agricultural inputs, its impact is immediately felt by farmers.
However, banks say that the reason for not implementing the crop loan waiver announced by the Chief Minister in the Assembly is the non-issuance of a government order.
Therefore, the Tamil Nadu government should issue the government order without delay and provide the crop loan waiver as announced. Through this, they said, the distress of 2.38 lakh farmers should be resolved.