Naveen urges Modi to address problems of farmers hit by demonetization

Bhubaneswar: Odisha Chief Minister Naveen Patnaik on Wednesday requested Prime Minister Narendra Modi to address the problems of farmers, who are facing difficulties due to the demonetization move.

In a letter to the Prime Minister, Patnaik urged to lift the restriction imposed on Primary Agriculture Cooperative Societies (PACS) so that these organizations can cater to the credit requirements of the farmers.

“The restriction imposed on PACS to draw Rs.24,000 per week may be lifted so that these organizations can cater to the credit requirements of their farmer members,” said the Chief Minister.

He said the PACS are unable to cater to the demand for crop loans, procurement proceeds and insurance claims pertaining to kharif -2015.

“Adequate currency may be made available to the District Central Cooperative Banks (DCCBs) by the currency chest branches of the commercial banks and this should be monitored by the Reserve Bank of India, Regional Office. This will enable the DCCBs to provide crop loans to the farmer members and also to pay their paddy procurement proceeds as well as insurance claims,” he added.

Consequent upon demonetization of high value notes and the restriction on DCCBs to accept the SBN as deposits and for exchange of such notes, the DCCBs are facing a severe liquidity crunch, said the Chief Minister.

Besides, the currency chest branches of the commercial banks are not able to provide currency to the DCCBs to cope with the demands of the farm families at the PACS level for their Rabi operations, said the Chief Minister.