Speaking to reporters after interacting with Palaniswami at the Tamil Nadu House here, the leader of the protesting farmers, P Ayyakkannu, quoted the chief minister as saying that the state was unable to offer a loan waiver to them due to a fund crunch.
"The chief minister, who had promised a loan waiver earlier, is now saying he is unable to honour it as the state revenues were hit due to GST (Goods and Services Tax) and the closure of around 2,000 liquor shops," he said.
"We cited the examples of other states and the chief minister said the AIADMK (the ruling party in Tamil Nadu) MPs would take up the issue in Parliament," said Ayyakkannu.
Palaniswami, however, dismissed the allegations and claimed that Tamil Nadu had been providing a financial assistance to the drought-hit farmers of the state and it was the Centre which had to take a call on farm loan waiver.
"The Centre has to offer a solution as regards farm loan waiver. The state government has been paying from its relief funds to the drought-hit farmers," he said.
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