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LATEST NEWS UPDATES | Note ban has caused loss of Rs 20,000-50,000 per acre, claims famers' union

Note ban has caused loss of Rs 20,000-50,000 per acre, claims famers' union

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published Published on Jan 23, 2017   modified Modified on Jan 23, 2017
-IANS

New Delhi: India’s cash-driven agri sector continues to reel under the effects of demonetisation, with farmers growing fruits and vegetables suffering “huge losses”, say farm leaders who want the Union budget to “compensate” them for these losses.

Amid reports of farmers dumping or refusing to harvest crops like tomatoes and peas due to a crash in prices as traders did not have the cash to purchase the produce, farmer leader Ajay Vir Jakhar said, “Farmers growing perishables like fruits and vegetables have suffered losses of Rs 20,000 to Rs 50,000 per acre on an average.

“The loss is huge,” Jakhar, chairman of Bharat Krishak Samaj (Farmers’ Forum, India), told IANS.

Explaining the “very bad situation”, farm leader Sudhir Panwar, President of Kisan Jagriti Manch, told IANS: “When the trader says that there is no money to purchase the crop, what is the way out for the farmer? Either sell at throwaway prices or dump the crop.”

Fresh produce like vegetables and fruits are sold in cash, he said, adding that the trade remains affected even two-and-a-half-months after the government scrapped higher-value currency notes on November 8.

“Cheques are not used. And farmers are not entering into the new economic system (going cashless) that Prime Minister Narendra Modi has proposed. The result is a dip in prices,” added Panwar, also member of the Planning Commission of Uttar Pradesh.

According to Jakhar, who is also Editor of agriculture magazines “Farmers’ Forum” and “Krishak Samachar”, “If the cost of harvesting the crop is as much as sowing, then the farmer will not harvest. If a farmer takes his produce to the market, and it is not sold, or the price is very low, he may dump the produce.”

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Hindustan Times, 22 January, 2017, http://www.hindustantimes.com/india-news/note-ban-has-caused-rs-20-000-50-000-per-acre-loss-claims-famers-union/story-KsFQMR5JZCAhg31ZrBHFBJ.html


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