For farmers who make most or all of their transactions in cash, the worst is yet to come. The delta paddy farmers are preparing themselves mentally for harvest of the kharif crop that begins at the end of the month. It will cost each farmer between Rs. 5,000 and Rs. 6,000 for harvesting one acre of paddy. The money needed is in the farmers’ bank accounts, but the banks do not have the currency notes to pay them.
Workers who harvest paddy are rarely from the same village, so none is going to work for credit. Any disturbance in the flow of finances will also impact the rabi crop adversely, the farmers fear. The cascading effect may push them further into debt, they fear.
“Fortunately sowing was delayed this year for various reasons. Otherwise, the harvest and demonetisation would have descended on Krishna delta farmers at the same time,” said Gudivada-based paddy farmer K. Venkataratnam.
Farmers are hoping against hope that the currency note flow will improve.
Leaders of the various farmers’ associations and federations are also anxious about the severe shortage of currency notes.
Andhra Pradesh Rythanga Samakiya president and former Drainage Board member Yerneni Nagendranath said while the paddy farmer had to plan how to harvest the standing crop by month-end, farmers of horticulture and other crops that had to be harvested on a daily basis were worried about money needed to pay the semi-skilled labour.
“I had to harvest coconut in my grove. With a lot of difficulty I managed to get the cash for paying the labour charges,” Mr. Nagendranath said. Unless currency was sent to rural banks on a priority basis, farmers would suffer losses. Agriculture in India was like tightrope walk and such disturbances would only affect the farmers adversely, he said.
Priority should be given to the perishable businesses. “What will happen if people stop buying gold for a few days?” Mr. Nagenderanath said to drive his point home.
Consortium of Indian Farmers’ Associations secretary general P. Chengal Reddy said farmers would face a big problem in purchasing fertilizers for rabi. Just like diesel, the government should allow farmers to use old Rs. 500 and Rs. 1,000 currency notes to pay for it.
