By continuing, you agree to LoansJagat's Credit Report Terms of Use, Terms and Conditions, Privacy Policy, and authorize contact via Call, SMS, Email, or WhatsApp
Key Takeaways

Farmer groups of Tamilnadu Vivasayigal Paadhukaapu Sangam had met at Gurubarapalli, Krishnagiri, Tamilnadu on 22nd June 2026. These farmers organised a token hunger strike to seek a universal loan waiver from the government. Protesters claim that the state government has not announced the complete waiver scheme as promised in their manifesto.
This protest comes six days after the government expanded the loan waiver on June 16, 2026. Under the new plan, cooperative bank loans borrowed between 1st May 2025, and 28th February 2026, have received complete waiver up to ₹75,000. Loans over ₹75,000 will get ₹35,000 as relief. 14.43 lakh farmers are likely to get a support of ₹5,932.23 crore from this scheme.
The protest in Krishnagiri is not an anomaly. According to RBI’s Handbook of Statistics on Indian States, agriculture sector of Tamil Nadu is showing a negative growth in 2023-24 and 2024-25. The farm crisis accumulated on back of two back-to-back bad seasons, and ₹75,000 cap on a loan amount does not absolve much.
Climate is the root problem, researchers say. There were losses between 15%-25% of yields of wheat due to heat waves in India during recent times. Every increase of 1-degree temperature results in the loss of an estimated 8% yield on an average in the nation. Debt follows crop failure. Waivers follow debt. The cycle repeats.
R. Gopinath, Principal Scientist at MS Swaminathan Research Foundation (MSSRF), puts Tamil Nadu’s exposure in numbers. Paddy makes up 35% of the state’s total cultivation. The remaining 65% is traditional and horticultural crops. That mix makes losses unpredictable and wide. He also flags crop insurance as a broken safety net.
Compensation to farmers, especially after floods, remains extremely low. As stated by him, it seems to be an act of formality and not of relief.
503 cases of farmer suicide were reported in Tamil Nadu in 2024 according to the data by NCRB. Loss in crops leading to debt is the immediate cause. Scholars believe that one-off waivers will not help break the cycle. Agronomists are asking for institutional reforms which include financial safeguard provided by the state to farmers every time they suffer a loss.
The Krishnagiri farmer agitation held on 22nd June, 2026, clearly spoke out against the limit of 75,000 waivers. ₹5,932.23 crore was spent to provide waivers to ₹14.43 lakh farmers of the state. However, the Tamizhaga Vivasayigal Paadhukaapu Sangam says this has a too-narrow scope and too-tight timeline. Until the government expands the waiver to include all categories of loans, all lenders, and all years of borrowing, farmers will continue to protest.
Why were farmers in Krishnagiri on hunger fast on 22nd June, 2026?
The hunger protest staged on June 22, 2026 was in response to Tamil Nadu government’s decision to extend loan waiver to just 75,000 farmers under the cooperative bank, excluding commercial bank loans and loans taken prior to May 2025. Farmers say this breaks the party’s manifesto promise of a full, universal crop loan waiver.
How does the Tamil Nadu government's ₹75,000 waiver cap compare to its manifesto promise of a full crop loan waiver?
The Tamil Nadu government promised a 100% crop loan waiver but capped relief at ₹75,000 for cooperative bank loans taken only between May 2025 and February 2026. Farmers with higher loans get just ₹35,000. Commercial bank borrowers get nothing.
About the author

LoansJagat Team
Contributor‘Simplify Finance for Everyone.’ This is the common goal of our team, as we try to explain any topic with relatable examples. From personal to business finance, managing EMIs to becoming debt-free, we do extensive research on each and every parameter, so you don’t have to. Scroll up and have a look at what 15+ years of experience in the BFSI sector looks like.
Subscribe Now
Related Blog Post
Simplify All Your Loans Into One Affordable EMI
Customers Served
Debt Consolidated
1200+ Reviews
Locations in India
Club all Loans & Credit Card Bills into Single EMI
Quick Apply Loan
Consolidate your debts into one easy EMI.
Takes less than 2 minutes. No paperwork.
10 Lakhs+
Trusted Customers
2000 Cr+
Loans Disbursed
4.7/5
Google Reviews
20+
Banks & NBFCs Offers
Other services mentioned in this article