By Bizodisha Bureau, Bhubaneswar, December 13, 2016 : Chief Minister Naveen Patnaik on Tuesday asked the Reserve Bank of India (RBI) to ensure availability of sufficient Rs 500 and Rs 100 notes in the banks and ATMs in rural areas.

Expressing serious concern over acute cash crunch across the State post demonetization, the CM directed Chief Secretary Aditya Prasad Padhi to assess demonetization effects on cultivation and in rural areas

He was reviewing the impact of demonetization on the paddy procurement process, disbursement of drought assistance and crop insurance and cultivation here through video-conference.

Patnaik sought to know from the district magistrates the problems faced by the farmers and people in rural areas.

The Collectors informed him that the cultivation work has been hugely affected due to inadequate availability of Rs 500 and Rs 100 notes in the villages while the farmers in some places are facing difficulties in making crop insurance premium payment, wages to workers, purchase of fertilizer and seeds during the harvesting time.

While 2,28,030 farmers were to get Rs 100 per quintal as the special drought assistance for 2015-16 kharif season, the government has disbursed Rs 72 crore to 2,13,949 farmers so far, the Chief Minister was informed.

Patnaik directed the Collectors to disburse the drought assistance amount to the remaining farmers by December 17.

In view of the paddy procurement process that has already begun in the state, he suggested the officials to ensure timely payment of their dues to the farmers.

He directed Padhi to review the paddy procurement every 15 days.

The review showed that the government has sanctioned Rs 1776 crore for crop insurance compensation to benefit 11.61 lakh farmers across the State.

Rs 1124 crore has been deposited in the bank accounts of seven lakh farmers so far, the officials told the CM who in turn asked the Collectors to expedite depositing the dues of farmers in their respective accounts by Dec 20.

As the government has decided to provide loan at 1 per cent interest to the farmers, Patnaik suggested the officials to hold awareness programme in the blocks for the benefit of the farmers.