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With the rabi sowing season setting in, the Gujarat government on Wednesday announced that farmers can issue cheques to procure any quantity of fertilisers from the depots of State-run companies.
The demonetisation of ₹500 and ₹1,000 currency notes had left farmers concerned over fertiliser procurement ahead of the rabi season.
Announcing the move, Deputy CM Nitin Patel said: “The State Cabinet met today and directed the State-run fertiliser companies and farmers’ fertiliser cooperative IFFCO to accept cheques from farmers for purchases. It was understood that in the time of rabi sowing, agriculture inputs are of prime importance.” State-run GSFC, GNFC and IFFCO have plants in Gujarat. Distribution takes place through company depots and registered dealers.
So far, most depots and dealers accepted only cash. “Typically, small farmer would purchase fertilisers worth ₹20,000-25,000, while big farmers would buy over a couple of lakh rupees worth of fertilisers. So far we dealt in cash only. But today we have been asked to accept cheque as well,” said Kisansinh Chaudhary, who is posted at the GNFC depot at Dolvan.
Chaudhary further said that currently very thin trades are taking place as most farmers do not have adequate cash to purchase fertiliser.
Urea supply The supply of urea will also not get affected due to payment issues, said Deputy CM Patel. “The Secretaries of Agriculture Department and Cooperation Department have been asked to ensure proper supply of urea and agri inputs for the winter sowing,” he said.
Meanwhile, trading in agri commodities has been at a standstill for a week now, following market yards and the Agricultural Produce Market Committee (APMCs) suspending trading due to lack of liquidity in the market.
“With cash going dry with traders, we have asked them to issue cheques to the farmers. But there are practical issues like limited number of cheque leaves and long waits for new cheque books. Also, most farmers prefer to settle trade with cash only. So, trading has been suspended till the liquidity situation improves,” said Ketankumar Patel, Chairman of APMC-Ahmedabad.
Trading remained paralysed across the State, with isolated yards operating for groundnut, cotton, castor and maize today.
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