Farmers as well as farm labour in the villages are facing hardship due to demonetisation and unless urgent steps are taken to improve cash flow, the sector may suffer a huge blow.
Kharif crops are being harvested in many parts of the State and the farmers have to prepare for the rabi season from January. Demonetisation could not have come at a worse time.
Gandhi, a farmer from Kalipatnam village near Narsapur town in West Godavari district, says that the new Rs 500 notes should be released in large numbers to ease the problem. "The new Rs 2,000 note is not of much use, as the smaller denomination of Rs 500 is not easily available and it is not easy to exchange every Rs 2,000 note with twenty Rs 100 notes," he says.
According to Bh. Ramachandra Murthy, a farmer from Krishnapuram vilage in Thondangi mandal of East Godavari district, "the old notes are being accepted right now, as there is still time till the end of December to exchange them. But it is getting increasingly difficult and the problem is getting out of hand. It is not easy for farmers or farm workers to stand in queues to exchange notes."
Rice millers, commission agents and merchants are unable to lift the harvested paddy and other crops from the villages, and they complain that the limits on daily withdrawal of money is hampering the activities.
"Farmers do not accept cheques, even if they have bank accounts, as they are so used to cash transactions. Old habits die hard," says A. Ramakrishna Reddy, a rice miller from East Godavari district.
Y Sivaji, former member of the Rajya Sabha, who has recently participated in the pre-Budget consultations in New Delhi, has welcomed the move of the Government, but feels that certain steps should be immediately taken to cushion the blow on farmers and the farm labour.
He says, "We have suggested that the Government allow purchase of farm inputs such as seeds, fertilisers, and pesticides with old notes for the coming rabi season and the Government has responded positively. It is also high time that the NREGA scheme is linked with agriculture and a mechanism developed for the proper implementation of the scheme. The farm labour should be registered with the panchayats."
He also feels that the credit flow to the agricultural sector should be enhanced substantially after demonetisation. "Moneylenders will also be left cashless in the villages and therefore banks have to rescue the farmers," he has said.
sarma.rs@thehindu.co.in