Parrikar also claimed that the the water level of rivers in the state has started dipping in an unexpected fall out of halt in mining activity.
The Chief Minister said his government has limited options at its disposal in the event of a "flare-up" as people are agitated over the loss of livelihood, following an interim ban on mining imposed by Supreme Court four months ago.
"Things are boiling slowly in the mining area. I have received a police report about people being impatient (due to closure of mining activity)....Don't be surprised if you find violence or suicide in the mining belt", the BJP leader told reporters here.
Responding to a query, Parrikar said the government cannot do much to stop the situation from deteriorating.
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"What can state government do?..Whatever we plan to do we have already announced through Governor's speech (to the State legislative Assembly session recently)", the Chief Minister said.
The state government had announced a financial package to the people affected by closure of mining activity.
The state government recently filed an affidavit in the apex court seeking early resumption of mining, which was countered by Goa Foundation on whose petition the Supreme Court imposed interim ban on the activity.
Parrikar said the current situation could be reversed only after resumption of mining activity or dump (low grade rejects piled up on the mining leases) handling.
"The water levels of the rivers have begun receding much before their seasonal period," he said.
"The lowering of water levels in rivers is the result of stoppage of mining activity.
"The water accumulated in the mining pits was pumped into the rivers annually, which is not happening now as the ore extraction has stopped. The water is still in the pits," he added.