On May 25, 2026, the Tamil Nadu government, under Chief Minister C. Joseph Vijay, announced a significant waiver for cooperative crop loans aimed at supporting small and marginal farmers. The scheme specifically targets loans up to ₹50,000, which will be fully waived for marginal farmers. Small farmers will benefit from a 50% waiver within the same limit. For those who borrowed between ₹50,000 and ₹60,000, marginal farmers will receive a waiver of ₹40,000, while small farmers will get ₹20,000. As the loan amounts increase, the waivers decrease, with farmers borrowing over ₹1 lakh receiving a flat waiver of ₹5,000. Additionally, large-scale farmers who took out crop loans through cooperative banks will also receive a uniform waiver of ₹5,000 each. The government estimates that 14,22,555 farmers who secured loans from cooperative banks between May 1, 2025, and February 28, 2026, will benefit from this initiative, which will impose an additional financial burden of approximately ₹2,044.46 crore on the state's budget.