Chennai: Tamil Nadu government today said the Centre’s decision to demonetise old Rs 500 and Rs 1,000 notes would hit its crop loan target for the year and also severely affect the food production.
This has also ‘impaired’ the cooperative credit sector that caters to the farming community.
Cooperation Minister Sellur K Raju today held a review meeting to discuss the scenario, a state government release here said.
It said the RBI notification demonetising the high value notes has affected Primary Agriculture Cooperative Credit Societies and Central Cooperative Banks.
While farmers were “unable” to repay their loans on time, the societies were not able to receive new fixed deposits and were therefore ‘completely impaired’, it said, adding, they were also facing difficulties in receiving repayments on crop loans and other credits.
