INR 20-50 Thousand Loss to Farmers due to Note Ban

India’s agri sector is facing towering losses post demonetization. The farmers growing 'Fruits' and 'Vegetables' suffer huge losses and want some compensation from the Union Budget in 2017. Amid reports of farmers dumping or refusing to harvest crops like tomatoes and peas due to a crash in prices as traders did not have the cash to purchase the produce, farmer leader Ajay Vir Jakhar said, "Farmers growing perishables like fruits and vegetables have suffered losses of Rs 20,000 to Rs 50,000 per acre on an average. The chairman of Bharat Krishak Samaj said that the loss is huge. The president of Kisan Jagriti Manch explaining the bad situation said that when the trader has no money to buy the produce, the farmer is left with two options, either slash the prices and sell the yield at massive losses or dump his entire produce.

The vegetables and fruits are sold in cash. The scrapping of higher denomination notes have resulted in the reduction of sales in the fruits and vegetables and the impact is persistent even after two and a half months. The farmers are still reluctant to adopt the new economic system proposed by Prime Minister Shri. Narendra Modi and that has resulted in the dip in prices. In the face of criticism that the move to scrap Rs 500 and Rs 1,000 notes had hit the Rabi sowing season, the government has maintained that, in fact, Rabi sowing (winter crop) acreage had gone up this year. Demonetisation has not only hit agriculture, but also India's vast informal sector -- artisans, semi-skilled workers, house construction workers, etc. -- that accounts for around 45 per cent of the GDP and nearly 80 per cent of employment, one said. While the cash situation has eased, the job scenario continues to remain bleak, says Panwar, adding that the note ban effect will be felt for quite some time.

By BOA Bureau