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LATEST NEWS UPDATES | Farmers badly hit by demonetisation, admits Agriculture Ministry -Sobhana K Nair

Farmers badly hit by demonetisation, admits Agriculture Ministry -Sobhana K Nair

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published Published on Nov 21, 2018   modified Modified on Nov 21, 2018
-The Hindu

Report concedes that farmers couldn’t buy seeds due to cash crunch.

Millions of farmers in India were unable to buy seeds and fertilisers for their winter crops because of demonetisation, according to a report submitted by the Union Agriculture Ministry to the Parliamentary Standing Committee on Finance.

This official acknowledgement of the impact of demonetisation comes on a day when Prime Minister Narendra Modi, speaking at a rally in Jhabua, Madhya Pradesh, said that he used the “bitter medicine” of demonetisation to bring back money into the banking system and to give “proper treatment to deep-rooted corruption system” in the country.

The Parliamentary Standing Committee on Finance, headed by Congress MP Veerappa Moily, was on Tuesday briefed on the impact of demonetisation by the Ministries of Agriculture, Labour and Employment, and Micro, Small and Medium Enterprises.

‘Not enough cash’


The report submitted by the Ministry of Agriculture, reviewed by The Hindu, said that demonetisation came at a time when farmers were engaged in either selling their Kharif crops or sowing the Rabi crops. Both these operations needed huge amounts of cash, which demonetisation removed from the market. “India’s 263 million farmers live mostly in the cash economy,” the report said, adding, “millions of farmers were unable to get enough cash to buy seeds and fertilisers for their winter crops. Even bigger landlords faced a problem such as paying daily wages to the farmers and purchasing agriculture needs for growing crops.”

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The Hindu, 20 November, 2018, https://www.thehindu.com/news/national/farmers-badly-hit-by-demonetisation-admits-agriculture-ministry/article25550924.ece?homepage=true


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