From Our Special Correspondent
Daijiworld Media Network - Belagavi

Belagavi, Nov 24: A fortnight after Prime Minister Narendra Modi’s shock announcement of demonetisation of Rs 500 and Rs 1000 high value currency notes from the midnight of November 8, a three-member Central team of officials arrived in Karnataka on Thursday to assess the impact of the demonetisation on the public, particularlyon the farming community.

The team headed by N Sivasailam, Additional Secretary, Union Finance Department, visited the Suvarna Soudha at Belagavi and called on Karnataka Chief Minister Siddaramaiah and Cooperation Minister H S Mahadeva Prasad on Thursday.

The Central team held discussions on the impact of demonetisation on the State economy, particularly on the functioning of the cooperative sector.

Following wide-spread drought conditions in several parts of Karnataka, farmers have been worst affected by the Centre’s decision, the officials told the team members.

Chief Minister Siddaramaiah has already written three letters to Union Finance Minister Arun Jaitely and explained the negative impact of the demonetisation on the economy.

Officials of the District Cooperative Credit Bank , Apex Bank, Karnataka Milk Federation and APMCs have explained the impact of the demonetisation to the team and urged them to take steps for ensure adequate supply of new currency notes of Rs 500 and Rs 2000 and other lower denominations.

Officials of the State Cooperation Department briefed the team about the adverse impact of the Centre’s decision on the functioning of the cooperative societies, milk unions, and sericulture sector, agriculture produce marketing committees (APMCs) and the rural economy.

Farmers have been unable to repay loans to cooperative banks owing to scrapping of high denomination currencies, the officials told the team.

To get a feel of the ground reality of post-demonetisation, the team members team visited DCC Bank, milk cooperatives and APMCs in Belagavi city and assessed their functioning, sources said.

The cooperatives have targeted to disburse Rs 1068 crore to farmers between November, 2016 and January, 2017. Owing to shortage of currencies, cooperatives have not been able to grant loans and recover loans from borrowers, officials told the Central team.