Mahanta Swain has not been able to harvest his paddy as he does not have cash for labourers.
Over 40 lakh agricultural families in Odisha have been hit by the demonetisation drive as the Centre disallowed cooperative banks to exchange the banned Rs 500 and 1,000 notes, according to the state government.
The cash crunch has prompted Odisha Chief Minister Naveen Patnaik to write to the Prime Minister asking for a review of the decision to not allow cooperative banks to exchange demonetised notes. With Mr Patnaik having made it clear that he supports the government in its fight against black money, the Odisha government is hoping PM Modi intervenes to bring relief to its farmers.
"We have got 44 lakh farm families, directly or indirectly, dependent on cooperative banks. The honourable Chief Minister of Odisha has written to PM and the finance minister to review the matter,"Odisha's Cooperation and Excise Minister Damodar Rout told NDTV.
Naveen Patnaik has asked PM Modi to reverse the no exchange rule for cooperative banks.
Most farmers in Odisha are dependent on the 355 district cooperative bank branches in the state.
Mahanta Swain, 50, says he has never faced such a situation like the current one in his 23 years as a farmer.
Mr Swain had taken a loan of Rs 50,000 from the Khurda district central cooperative bank. But after the currency ban, he is left with no cash to harvest his bumper paddy crop, which he had hoped would help pay off the debt. He has no money to pay labourers and no money to sow the rabi crop.
"I had taken a loan of Rs 50,000 from the society. I wanted to deposit the loan instalment, but could not do it. Also, I could not avail another sanctioned loan of Rs 30,000 by the society to start sowing the Rabi crop after harvesting the paddy. I couldn't cut the paddy due to financial constraints. So how can I start sowing the Rabi crop?" Mr Swain told NDTV. And he is not alone.
Around 44 lakh farmer families in Odisha, who have taken agricultural loans, are also facing a similar situation.
Odisha's 355 district cooperative bank branches are unable to exchange the old notes.
Not just farmers, even self-help groups have taken a hit. Motimani Rout, 43, who runs the Maa Bhubaneswari self-help group that makes incense sticks, phenyle and paper plates, is worried that she will have to pay a 2% penalty as she will default on her loan.
"We went to the cooperative bank with Rs 500 and 1,000 notes. But the bank told us to go back. So how can we pay back the loan? If the loan is overdue we will be charged an extra 2% on the loan amount. So will that penalty be paid by the central government?" Ms Rout said.
With business down due to the shortage of currency, the demand for Maa Bhubaneswari products is at an all-time low.