Bhubaneswar, Oct. 28: The state government today requested all leading banks to help farmers from rural pockets in the post-calamity situation after Phailin and floods.

They were asked to render low-interest crop loans for rabi crops and revival of small business opportunities.

The finance department has urged the state-level bankers’ committee to convert all short-term loans given to the farmers to long-term ones. It also urged the banks to give loan to the farmers at 2 to 5 per cent interest per year, so that the farmers could make prompt payment and get fresh loans in view of the crop damage. According to a report released by the special relief commissioner of the revenue and disaster management department, 10,722 villages were marooned across the state affecting 61.30 lakh people. While 2,50,023 hectares of crop land were damaged in the calamity, 1,31,499 hectares of cropland got damaged with more than 50 per cent of crop. The total loss caused to the agriculture sector is Rs 412 crore.

Finance secretary Upendra Nath Behera said: “All the commercial, regional rural banks and the co-operative banks were requested to extend fresh crop loans to the farmers, according to the Reserve Bank of India’s guidelines. People doing their own business other than agriculture can also get the loans.”

Focusing on the loan finance for rabi crops, Behera advised all the banks to achieve the annual target of crop loan and term loan finance from financing of rabi crops.

A member of the committee also said that besides agriculture, the financing banks would also implement the RBI guidelines in providing rehabilitation packages and finance to micro, small and medium enterprises sector.

They also suggested that special camps would be held in co-ordination between the departments and the banks.

The finance secretary requested the committee to send instructions to all the branches of the member banks across the state. He also asked officials to hold monthly review meeting to closely monitor implementation of the relief and rehabilitation measures.

RBI regional director P.K. Jena, committee (Odisha) convener S.P. Singh, senior bank officials and secretaries of various departments attended the meeting. Rajya Sabha member from Berhampur Renubala Pradhan today submitted a memorandum to chief minister Naveen Patnaik regarding damage of standing sugarcane crops and the Aska Co-operative Sugar Factory due to Phailin and floods.

Pradhan in her memorandum said 5,000 sugarcane growers of the district had incurred a loss of Rs 70 crore as over an area of 9,000 acres were affected by the twin calamities. The sugar mill also incurred a loss of Rs 9 crore.