Mangaluru: “Demonetisation policy has compelled the co-operative sector to shut down all the business. Weakening the co-operative sector was the propaganda of introducing demonetisation policy,” said co-operative Minister H S Mahadevappa.

He was addressing the gathering after inaugurating the 63rd All India Co-operative Week at Nehru Football Stadium on Friday.

“Customers of co-operative societies are not being able to do the transaction from the societies. Farmers are being unable to repay the agricultural loan taken from the co-operative banks, thus they are missing the discount in interest given by the government,” he said.

He further said that nearly 45 lakh people are having account in DCC banks and regarding this the Chief Minister has written a letter to union finance minister to ease the restrictions imposed on Co-op banks.

President of SCDCC bank, Dr M N Rajendra Kumar said that the government should extend the validity of repayment of the loan taken by the farmers and it should implement the recommendations of Prof Vaidhyanathan reports.

“If the government fails to meet our demands then intensive protests will be staged and I will resign to my post,” he added.

District in-charge Minister Ramanath Rai, Food and civil supplies Minister U T Khader, former MLA Amarnath Shetty, MLC Motamma and others were present.