Bhubaneswar, Dec. 9: Odisha is facing an acute shortage of Rs 100 and Rs 500 currency notes, and the banks are getting only one third of their requirement of these notes.

The currency scenario in the state may affect the farmers and rural people very badly, finance minister Pradip Kumar Amat told the Odisha Assembly today.

Responding to the demand of the Opposition parties to make a statement on the impact of demonetisation in Odisha, Amat said: "The Reserve Bank of India has cash to meet the requirements for next four to five days as against the mandatory provision to maintain a buffer for 10 to 12 days."

He pointed out that 47 per cent population, living in the rural areas, did not have access to banks and that banking correspondents were not being able do their job due to poor Internet connectivity and other associated problems.

He said the co-operative banks had not been allowed to accept Rs 500 and Rs 1,000 notes. The farmers in Odisha are dependent on primary agriculture co-operative societies and district central co-operative banks for loans and hence rabi farming in Odisha during the winter would be affected by the scenario.

Besides farmers, small traders also depend on these banks and their livelihood would also be hit due to currency shortage.

There are more than 55 lakh peasant families in Odisha, of which 85 per cent are small and marginal farmers. "This segment is badly hit by demonetisation as most of them have accounts in co-operative banks," said co-operation minister Damodar Rout.

Rout said crop insurance claims of Rs 1,771 crore had been disbursed and transferred to bank accounts of the farmers affected by the drought during the last kharif season. "However, they are not able to withdraw cash," he said.

On November 16, chief minister Naveen Patnaik had written to Prime Minister Narendra Modi, urging him to reconsider the decision not to allow the co-operative banks receive and exchange the scrapped notes.

Amat said 70 per cent of the state's population, which lives in rural areas, does not have access to Internet and they are thus unable to avail the cashless transaction facility.

Naveen had also requested the Prime Minister not to make PAN card number mandatory for the tribal people visiting banks to deposit or withdraw cash as most of them did not have these cards, said Amat.

Earlier in the day, Congress members expressed their concern over the cash scarcity in Odisha.

"Vegetable growers are the worst-hit as they are not in a position to accept higher denomination notes. Odisha is now witnessing distress sale of vegetables, which may force the farmers to commit suicide," said Congress chief whip Tara Prasad Bahinipati, while demanding a statement from the finance minister on this. Supporting his demand, the Congress members trooped into the Well, forcing two adjournments till the afternoon.

They also criticised the chief minister for welcoming the demonetisation move. However, BJD members sprang to his defence, saying that he had "brought the plight of the people to the notice of the central government and the RBI".