The societies were unable to disburse crop loans at a time when samba paddy crop was underway in Tamil Nadu, it said.
The Centre’s decision will particularly affect the department’s target of crop loan disbursal for the year, which was Rs 6,000 crore. As of November 7, 2016, Rs 2,075.41 crore has been disbursed to over 3.38 lakh farmers as against Rs 3,512.80 crore to over 6.38 lakh farmers last year during this time, it said.
“A situation has come up wherein the crop loan target for the year (2016-17) cannot be completely met on account of the RBI notification (on demonitisation). Further, Tamil Nadu’s food production will also be severely affected,” it said.
A majority of villagers had savings accounts in such credit societies but could not deposit the now defunct Rs 500 and Rs 1000 notes, it said.
