Nayagarh: Cooperative leaders have demanded a Vigilance inquiry into an alleged Rs 500 crore sugarcane farm loan scam that recently came to light in the Nayagarh district. The demand was raised by cooperative leader Sanyasi Pradhan during the district-level Cooperative Festival at the Zilla Parishad Conference Hall Saturday.
According to a report from the District Agriculture Department, no sugarcane cultivation has taken place in the area. However, the Cooperative Department has allegedly disbursed loans exceeding Rs 500 crore under the pretext of sugarcane farming. Pradhan expressed concern that subsidies were being misappropriated through fraudulent paperwork, claiming loans for non-existent sugarcane cultivation.
A preliminary investigation into these loans revealed that over Rs 20 crore worth of subsidies might have been misappropriated, casting doubt on the role of the Cooperative Department. Sugarcane cultivation in Nayagarh district has been on the decline since the closure of sugar mills. Apart from areas like Kridashpur and Jemadeipurpatna, sugarcane farming has largely ceased. A handful of farmers continue to cultivate sugarcane to preserve the tradition and support local jaggery production.
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Though most sugarcane farmers reportedly did not avail loans, the Cooperative Department claims to have disbursed loans exceeding Rs 500 crore to farmers for the 2024-25 fiscal year. Investigations suggest that reports of sugarcane cultivation are being fabricated to siphon off subsidies.
Farmer leader Ranjit Dalabehera stated that sugarcane farming has effectively disappeared from Nayagarh district. He alleged that funds intended for sugarcane cultivation subsidies are being diverted elsewhere. An RTI finding revealed that while the Cooperative Department claims to have issued loans for sugarcane farming, the Agriculture Department maintains that no such cultivation is taking place. “This discrepancy indicates a potential scam requiring thorough investigation,” Pradhan said.
Sources said the loans were disbursed through nine branches of the Nayagarh Central Cooperative Bank during the 2024-25 fiscal year: Sharanakul, Odagaon, Itamati, Nayagarh, Gania, Mahipur, Daspalla, Khandapada, and Bhapur.
Pradhan stated, “There needs to be an investigation to determine which farmers have taken these loans and whether they are genuinely engaged in sugarcane farming. Only a proper inquiry will reveal the truth.”
The conflicting reports from the Agriculture and Cooperative departments highlight a significant irregularity. Pradhan added that an investigation is necessary to establish accountability and ensure transparency. He questioned how cooperative banks and farmers could benefit if such corrupt practices prevail without adequate checks. “This systemic corruption within the system has to be exposed,” he said.
PNN
