Farmers, victims of demonetisation

Money crunch affects agrarian community.

By Author   |   Published: 23rd Nov 2016   8:56 pm Updated: 23rd Nov 2016   8:57 pm
Customers of a bank form a serpentine queue line for withdrawing cash in Mancherial.

Adilabad: Agrarian community, which is upbeat over good monsoon registered this year, is bearing brunt of demonetisation move of the Union government. Farmers are already undergoing problems due to delay in payment of cash for their produce sold in market yards. They are now tense over crop loans for the ongoing Rabi season that began in October.

The farming community was reeling under crisis due to scanty rainfall for the past three years. To the delight of farmers, the irrigation projects were brimmed with water thanks to heavy rains recorded during the monsoon. However, they are facing a new challenge in the form of demonetisation.

Alle Narayana, a farmer said that invalidation of Rs 500 and Rs 1,000 notes is likely to prove a bane for farming community. He stated that both selling produce and getting a loan has become a herculean task. He stated that bankers had declined to give crop loans, citing some rules of the Reserve Bank of India (RBI), besides unavailability of cash.

The ryots are moving from pillar to post to get payments from traders for their produce of Kharif season. They were given cheque leaves by the traders at the time of disposing their produce. They are unable to convert the cheques into cash following restrictions on withdrawal imposed by RBI.

In the mean time, banks are running dry due to heavy rush of customers seeking exchange and withdrawals of cash. This is likely to double problems of the farmers. Consequently, farmers are forced to rely on private money lenders.

Ironically, even private money lenders are not able to provide loans to farmers, due to crunch of funds. As a result, agrarian community is now a worried lot — with money used for purchasing seeds, fertilizer and pesticide, renting agriculture equipment and hiring labourers becoming major issues. This scenario is resulting in a crisis-like situation to the farmers.