In Mandsaur, ‘notebandi’ root of all evil

MODI GOVERNMENT’S DEMONETISATION SHOCK HAS DESTROYED LOCAL MARKETS AND PITTED FARMERS AGAINST TRADERS

and crop prices.

“A farmer sells when he needs cash immediately — for a wedding, a funeral, to pay a loan,” said Madan Lal Viswakarma, “But after notebandi, traders at the government-run markets only pay by cheque.”

The cheques take 20 days to clear, Madan Lal said, and then the banks have no currency to give. “If you want cash, the traders beat down your price, and charge two rupees on every hundred they pay,” he said.

The quest for cash, Lakshmi Narayan Viswakarma said, had pushed farmers deeper into debt.

“At harvest, everyone rushes to sell so they can pay back their loans,” he said, explaining that money lenders lend at 2% per month, or 24% a year, and settle all accounts in cash.

Those who can’t pay, like farmer Dinesh Patidar, are forced to sell their land.

“But land prices have halved, from ₹5 lakh per bigha, to ₹2.5 lakh per bigha,” said Patidar, whose son Abhishek, was killed in the firing, “After notebandi, no one has the cash to buy land.”

Across the road from Patidar’s home, traders said the note-ban had destroyed them as well.

“The farmers demanded cash, but the government tied our hands,” said Ghatiya, the soybean trader. “Some cheques bounced because of a spelling mistake, the farmers felt we were cheating them.”

Trader credit had dried up as well, reducing each trader’s purchasing power.

“A lot of chit-fund money finds its way into the agricultural markets,” explained a pulse trader, “That completely vanished this year, so traders couldn’t buy as much as they usually do.”