Farmers in Coimbatore district are encountering challenges in obtaining crop loans from Primary Agricultural Cooperative Societies (PACS) due to technical issues and delays, even after the introduction of an online application system by the Tamil Nadu government. The digitalization of the crop loan process was aimed at facilitating same-day processing for eligible farmers seeking interest-free loans of up to Rs 2 lakh for 12 months based on their cultivated crops.
Previously, manual applications were accepted at PACS offices until January 2026, with farmers experiencing delays of up to 15 days before loan disbursement. Despite the transition to digital processes to expedite approvals, farmers have reported encountering obstacles. A farmer from Ambothi village highlighted server-related problems causing delays in application submissions and the slowdown in uploading essential documents like ‘chitta’ due to strikes by Revenue Department officials.
Concerns have also been raised by farmers’ representatives regarding reductions in sanctioned loan amounts. According to R. Periyasamy, vice-president of the Tamil Nadu Vivasayigal Sangam, loan limits are being reduced based on revised online crop details submitted by farmers. Any discrepancies in crop information, including GPS location data, have led to lower loan approvals than applied for, as alleged by Periyasamy.
In response to these issues, A. Alagiri, Joint Registrar of the Cooperative Department, mentioned that the online system has been operational for a month, processing over 1,200 applications and disbursing loans. While acknowledging grievances related to server problems, Alagiri stated that farmers unable to apply online for more than two days are allowed to submit offline applications. He emphasized that loan limits are determined strictly based on the cultivated crops, adhering to specified guidelines.
