Hyderabad, Telangana, October 20, 2025 – In a bold move to alleviate the financial burdens of the state's agrarian backbone, Chief Minister A. Revanth Reddy's Congress government today unveiled a landmark ₹10,000 crore farm loan waiver scheme, targeting over 50 lakh small and marginal farmers across Telangana. Described by farmers' unions as a "game-changer" for the Hyderabad region and beyond, the initiative waives outstanding loans up to ₹2 lakh per farmer, with immediate disbursements set to begin next month.
The announcement, made amid the ongoing Kharif harvest season, comes at a time when Telangana's farming community grapples with erratic monsoons, rising input costs, and lingering debts from the COVID-19 fallout. Speaking at a grand public rally in Secunderabad's Gymkhana Grounds—flanked by Agriculture Minister T. Harish Rao and a sea of green-clad farmers—CM Reddy emphasized the scheme's role in fulfilling the Congress party's 2023 election manifesto promise.
"This is not just a waiver; it's a reset button for our farmers' dreams," Reddy declared, his voice booming over the cheers of the 20,000-strong crowd. "For too long, our anna-datas have been chained by usurious loans from cooperatives and banks. Today, we cut those chains. This ₹10,000 crore injection will flow directly into rural economies, boosting everything from seeds to school fees in Hyderabad's peri-urban belts."
The scheme, officially christened "Rythu Bharosa 2.0," builds on the previous BRS government's partial waivers but expands coverage to include tenant farmers and those with loans from microfinance institutions. Eligibility is pegged to Aadhaar-linked bank accounts and soil health cards, with the state treasury allocating funds from a special agricultural relief corpus. Officials estimate it will benefit 70% of Telangana's 72 lakh cultivable households, with a focus on the Hyderabad metropolitan area—home to 15 lakh farmers on the fringes of the urban sprawl.
Farmers' unions, often at odds with the government over procurement delays, erupted in rare bipartisan praise. "This is a true game-changer for the Hyderabad region, where land fragmentation and urban encroachment have squeezed smallholders," said S. Ramulu, president of the Telangana Rythu Sangham (TRS), a key ally in the rally. "We've pushed for this since the drought of 2023. It could prevent suicides and revive pulse cultivation in Ranga Reddy and Medchal districts." The Andhra Pradesh-based Kisan Mazdoor Sabha echoed the sentiment, hailing it as a "federal model" for neighboring states.
Not all voices were unanimous, however. Opposition BRS leader K.T. Rama Rao slammed the waiver as "election optics" ahead of the 2026 municipal polls, alleging inadequate consultation with gram panchayats. "Where's the plan for crop insurance or MSP guarantees? This is short-term sops masking long-term neglect," Rao posted on X, drawing sharp rebuttals from Congress MLAs.
Economists offered a mixed take. "The fiscal math works if paired with revenue from the new IT corridor, but watch for moral hazard—will it encourage over-borrowing?" noted Dr. Lakshmi Reddy, an agronomist at Osmania University. The state budget, already strained by flood relief, projects a 2% dip in the fiscal deficit to accommodate the outlay, funded partly by green bonds.
Implementation kicks off with a digital portal launch tomorrow, allowing farmers to apply via the TS Rythu app. Door-to-door verification teams, comprising revenue officials and bank reps, will fan out to 500 mandals starting November 1. Early pilots in Siddipet and Nalgonda districts reported 90% uptake, with waived loans credited overnight.
As the sun set on the rally, dotted with tractors and placards reading "Revanth Anna Zindabad," one farmer from Ghatkesar summed up the mood: "For the first time in years, I can afford to dream of expanding my chili farm without fear of the bank knocking." With Diwali around the corner, the waiver couldn't have timed better—literally lighting up hopes in Telangana's heartland.
With inputs from Telangana Agriculture Department and farmers' union spokespersons
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