Demonetisation to affect food grain production in TN

The meeting chaired by Cooperation Minister Sellur K. Raju and attended by district central coop bank MDs and regional joint registrars also said that farmers were unable to repay crop loans to PACB (Primary Agricultural Cooperative Banks) while village level credit societies were unable to get new deposits. The minister said that while Rs.910 crore interest was converted to subsidy by the state government for farmers who repaid loans promptly, another Rs.200 crore was allocated towards incentive and interest subsidy for 2016-17. Demonetisation has also affected disbursal of 7 per cent interest subsidy for farmers repaying loans before the due date, he added.

While the state government allocated Rs.25, 289.65 crore as interest free crop loans to 54.33 lakh farmers from 2011 to November 7, this year, it was targeted to disburse Rs.6000 crore crop loan this year, the minister said.  Of the above amount Rs.3.38 lakh farmers were disbursed crop loans totalling 2075.41 crore as on date, he added. During the corresponding period last year 6.38 lakh farmers were issued crop loans worth Rs.3512.80 crore, the minister said. While CM Jayalalithaa’s efforts resulted in coop institution deposits doubling to Rs.54, 914 crore from 26, 247 crore in 2011, additional efforts for deposits were affected by the current imbroglio. 

Not only were the 4,474 credit societies unable to provide seeds and fertiliser to farmers, they were also unable to get crop insurance premia from farmers. Coop banks were totally affected by lack of funds while the 4344 rural Seva centres were unable to provide farmers with community, income and birth and death certificates the minister added. Demonetisation has affected farmer members attached to 23 district central cooperative banks and their 813 branches, he averred. Food secretary Pradeep Yadav, cooperative registrar A. Ganansekaran and cooperative apex bank chairman R. Ilangovan participated in the review meeting.