The jaggery market at Anakapalle in Visakhapatnam district, the biggest in Andhra Pradesh and South India, is still reeling under the impact of demonetisation, after the market yard was re-opened last Saturday after a gap of eight to nine days.

During the past three to four days, transactions have been sluggish as traders are unable to pay the farmers in cash, and most farmers are either not in a position to accept cheques as they do not have accounts, or are unwilling to do so.

S. Ramakrishna of Ramakrishna Corpn., a jaggery wholesaler, says, "Hardly 11,000-12,000 lumps of jaggery (each weighing 16 kg) is arriving in the market yard at present. The farmers are in no position to prepare jaggery in the villages as they are unable to pay the labour and we are unable to pay them due to the cash crunch. In fact, it is becoming extremely difficult even to pay the transporters who have brought jaggery from the field to the market yard."

He feels demonetisation could not have come at a worse time for the jaggery trade, as the season has just begun. "The next three to four months, till the end of March and April, are crucial and unless the crisis is resolved, the trade, farmers and labour will take a terrible blow," he said.

He complained that the whole supply chain has been affected and his firm was unable to recover money for jaggery sent to Odisha, Chhattisgarh and Bengal.

P. Govind, another wholesaler, says even educated farmers are reluctant to accept cheques and "the banks refuse to draw our own money to meet transaction costs." He says some of the cane is being diverted to private sugar factories in other districts.

At present, jaggery is selling at Rs 330 per 10 kg and black jaggery below Rs 300 per 10 kg. As the winter advances, farmers are apprehensive the recovery rate will go down.

sarma.rs@thehindu.co.in

Related Topics
comment COMMENT NOW