"The Prime Minister had failed to understand the sentiments of the Kerala Assembly, and this is an insult to the state," Vijayan told reporters here at a hurriedly called press meet.
In view of the development, he said they have cancelled the Delhi visit scheduled for tomorrow.
A special Kerala Assembly session, convened yesterday to discuss the cooperative sector issue after demonetisation, passed a resolution asking the Centre to allow cooperatives also to exchange scrapped notes and accept deposits as done by commercial banks.
Vijayan said "When we sought time to meet Prime Minister, we were told to meet the Finance Minister instead. We then decided there was no need to go to Delhi to meet FM.'
He said he had already met Finance Minister Arun Jaitley a few days ago on the issue.
Attacking Modi, he said the reply showed that the Prime Minister was not prepared to accept the sentiments of the people and the state assembly.
CPI State Secretary Kanam Rajendran said the PM's response showed his 'arrogance'.
"While Modi has time to go all over the world to meet leaders, he does not seem to keen to meet the representatives of the state," he said.
However, BJP state President Kummanam Rajasekharan said the decision to cancel the Delhi visit, betrayed its "insincerity" to the issue.
The matters relating to cooperatives had to be discussed with the Finance Minister, which the leader of the LDF and UDF have refused.
The LDF later announced in a statement that it would
observe tomorrow as "blackday" protesting the denial of permission to meet the Prime Minister.
Meanwhile, Cooperation Minister Kadakampally Surendran said he held discussions with a central team here on the issues being faced by Cooperative sector following demonetisation.
"A detailed discussion was held with the officials," he said in a statement here.
He informed the officials that those in the villages had taken a bad hit due to the crisis in the cooperative sector as they were unable to meet their daily needs.
A majority of the account holders in primary societies had only a small investment in the cooperative sector and they were unable to withdraw the same, he said.
Under these circumstances, the state asked the central team to take urgent steps to redress the problems.
The central team assured that these issues would be brought to the attention of the government, the statement added.
