The State government’s crop loan waiver announcement was discussed in detail during the monthly farmers’ grievances redress meeting on May 29, 2026 (Friday) in Coimbatore and Tiruppur districts.

Farmers, by and large, rejected the basis of loan waiver, which, they said, was meagre to sustain their livelihood, and some even reprimanded the TVK government, stating that the leadership had gone back on the election promise of complete loan waiver for farmers with five-acre holdings, and 50 % waiver for those with higher acreage under cultivation.

While acknowledging the positive impact of complete waiver for marginal farmers who had borrowed less than ₹50,000, and ₹40,000 waiver for those among them who had borrowed loans between ₹50,000 and ₹60,000, the representatives of farmer associations wondered how the flat waiver of ₹5,000 for small and marginal farmers who had borrowed more than ₹1 lakh would bring about the promised succour.

The time-frame of loan disbursal taken into consideration ought to be effective from March 1,2025 to March 31, 2026. The duration between May 1, 2025, and February 28, 2026, was unreasonable, G. Ranganathan, State Organising Secretary of Tamizhaga Vivasayigal Sangam, said.

While fixing reasonable procurement price for farm produce would work well in the long run, the TVK government could consider providing production-linked incentives as in other States, as an alternative to subsidy.

Also, the loan waiver for a specific duration would not be of help to farmers as the pending loans, when left unpaid due to recurring losses, would severely impact their CIBIL score that would disqualify them from obtaining fresh loans for sustaining their livelihood, he said.

Representatives of the Tamizhaga Vivasayigal Padhukappu Sangam took a strident stand on the issue while taking part in the grievances redress meeting in Tiruppur district.

They questioned the TVK government’s rationale behind deviation from its election manifesto.

The “meagre” waiver would never extricate debt-laden farmers who spend ₹60,000 for raising sugarcane on one acre, and ₹36,000 for cultivating paddy on one acre, from their predicament.

They sought to remind the State government that the earlier government had waived ₹12,000 crore of farm loans, and the previous dispensation had waived ₹7,000 crore.

The Tamil Nadu Vivasayigal Padhukappu Sangam has announced State-wide protests on June 1 on the issue.