Tamil Nadu government has waived some Rs 5,780 crore of crop and other medium and long-term loans taken by small and marginal farmers from cooperative banks. The move is applicable only to loans obtained from cooperative banks until March 31, 2016, not commercial banks.
This step taken by the state government will benefit nearly 17 lakh farmer across the state who are reeling under severe pressure. Their debt burden had increased over the past several years due to a plethora of factors and will now be eased a lot.
The waiver of loan was one of the poll promises made by AIADMK in their election manifesto and was fulfilled hours after Jayalalithaa took oath as chief minister.