Odisha Cooperative Dept in Mess Farmers in great stress CAG OTV News



Bhubaneswar: Despite cases of farmer suicides that shook Odisha hard, only just over half of the state’s farmers were able to benefit from concessional credit institutional support from the Odisha government to increase their harvests. The Kisan Credit Card System (KCC) has also been found floundering here.

According to the findings of the audit of the CAG report on income and the economic sector in Odisha, while only 55% of farmers registered in PACS (primary agricultural credit companies) benefit from concessional agricultural loans from the state government , the reach of the Kiasn Credit Card (KKC) has also been in deep deficit.


A detailed examination of the facts uncovered by the CAG reveals that the size of the state government credit scheme itself is designed to benefit just over half of farmers.

THE PROOF: The CAG findings show that, although the target for disbursing concessional loans for crops to farmers was between 81% and 98% of the annual target amount set, the physical achievement in terms of the number of Farmers taking advantage of the advantage ranged from 55 to 57 percent.

This shows that the amount allocated to disbursing crop loans to farmers through PACS was an understatement of the actual credit need of over 55 lakh farmers in the state. (See image below).


THE DOUBLE GAME: Details of the audit findings that dealt a fatal blow to farmers in the state (2015 and 2016 saw large-scale farmer suicides). Why? CAG discovers serious mismanagement.

  • The file review revealed that the Department of Revenue and Disaster and Management, on March 11, 2016, declared 29,077 villages under 233 blocks and 404 wards of 55 urban local bodies in 27 districts of the state as being affected by drought and having suffered crop losses of 33% and more during the Kharif season. 2015.
  • District collectors were required to issue “annewari” certificates by March 31, 2016, thus enabling farmers to benefit from the MTL (medium term loan) on their short term loans (STL).
  • However, it was observed that with the exception of Bargarh, no other district had completed the formalities required to issue an “annewari” certificate before March 31, 2016e., During the monetary period for Kharif 2015. From Significantly, Bargarh recorded the highest number of farmer suicides in 2015.
  • What is the size of the blow: The OSCB estimated that the STL worth Rs 2,500 crore advanced during Kharif 2015 would be converted to MTL in the affected districts. In the meantime, of the 32.01 lakhs of expected beneficiary farmers, 24.06 lakhs (75.16%) had already repaid their loans to avoid the obligation of penal interest provided by the OSCB.
  • Thus, due to the non-issuance of the “annewari” certificate by the district collector, the conversion of STL from Rs 2,500 crore to MTL under the program could not be carried out and therefore deprived the benefits. conversion of loaned farmers.


  • The audit examined the records of nine branches of DCCB and 27 PACS in nine test-controlled districts and found that an amount of 445.26 crore rupees was paid to farmers of 1,56 lakh in the form of loans. agricultural products during the period 2014-2018.
  • Of the above, an amount of 96 crore (38.84 percent) was disbursed during said period for the repayment of pre-harvest loans to 59,696 farmers.
  • In this process, the adjustment of the old loan was made by sanctioning a new loan with accounting adjustment without any actual cash outflow.
  • Therefore, the completion of the disbursement of the new crop loan had been reported by OSCB taking these cases into account.
  • The Odisha State Cooperative Bank (OSCB) had requested an interest subsidy of Rs 1,685.63 crore for the crop loan disbursed at ground level for fiscal years 2014-18, including a surplus claim of Rs.392.06 crore over due dates.
  • Of the excess claim of 06 crore, a sum of 357.68 crore had already been paid by the government to the OSCB in October 2019, which resulted in the extension of an undue advantage to the OSCB.
  • This shows that the farmers did not get their due, but the OSCB reaped a rich harvest.
  • An audit test verified 6,991 of the 39,165 member farmer land registers in 27 PACS and noted that no such verification had been performed by the tax authorities in the land register. The audit examined 171 land records from 55 member farmers as reported in the land register and found that in 71 cases the land details provided by the farmers did not match the Bhulekh records kept by the R & DMD.
  • During the years 2014-15 and 2017-18, the KCC problem in the state increased from 1.67 lakh to 0.78 lakh. OSCB said this was due to the closure of non-functional facilities
  • In addition, the program set, among other things, a target for the issuance of two lakh cards per year. These targets ranged from 18.01 to 21.51 percent of eligible farmers each year.
  • However, these targets were not met, with a deficit ranging from 16.50 to 61.00 percent during the said period. This indicated that member farmers, who had not received a KCC, could not benefit from the scheme.
  • The CAG also observed that the OSCB did not activate the 18.48 lakh RuPay Kisan Cards within the validity period.
  • In addition, since the OSCB did not take any action to revalidate these cards at a later date by extending the expiration date, after a period of more than two years, the possibility of using these cards was very
  • As a result, PACS member farmers and non-defaulting KCC holders were not only deprived of funds in accordance with the policy / instructions set out in OSCB / DCCB / PACS, but the entire expenditure of Rs 17.43 crore was wasted.


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