Agri sector takes a hit

Farmers in rural India are bearing the brunt of the demonetisation of the `500 notes.

They have seen the prices of vegetables and fruits crash, as the traders do not have cash to pay them.

Even if they accept cheques there is the limit of `25,000 that they can withdraw.

Vijay Jawandhia who calls himself the Tata/Birla/Ambani of his village in Waifad in Vidarbha as he owns 50 acres of land where he grows cotton and soya says he cannot sell his crop as the traders have no cash.

And if he does not get money, he cannot pay his labour who in turn will not be able to buy their essentials.

The price of oranges, for which Nagpur is well known have crashed, by 40 per cent and the price of cauliflower is down to `5 per kg while it sells at `10 per kg in retail, similarly the farmer is paid `45 per kg for palak whilst the consumer pays 10 per kg.

It is the same with other vegetables and fruits and groundnut to tur for which the minimum support rice is yet to be declared, said Mr Jawandhia.

“It is only the traders who are benefiting from demonetisation”, he said.

Even in the case of cotton, he said sale started well at `5,500 — `6,000 per quintal but after demonetisation it dropped to `4,800 as traders have no money.

The bulk of cotton is yet to arrive in JanuaryFebruary and the situation could be chaotic if cash is not available.

Added to this is the farmers are also getting a raw deal in buying inputs like urea and naphta.

Crude oil prices have fallen, but prices of naphta and urea have not.