: Following demonetisation, farmers including big ones are not able to mobilise cash required to pay the agricultural workers in the paddy-rich Penna delta covering Kovur, Alluru, Nellore, Buchireddypalem and other areas. The farmers’ leaders say this unprecedented crisis came at a time when the farmers are all set for the rabi season to cultivate crops in nearly 5 lakh acres.
Another blow to the farmers in the delta here is that some of them have yet to exchange their old currency notes and also get payments for previous kharif harvest.
Faced with an unexpected challenge now, the farmers have decided to voice their concern before the government demanding immediate relief from demonetisation effect by permitting acceptance of old notes of Rs. 500 and Rs. 1,000 denominations at the shops relating to agricultural inputs like fertilizers and seeds.
As per an estimate, nearly Rs. 290 crore worth agricultural operations will take place during this rabi paddy season. Of this, the farmers will spend up to Rs. 100 crore on manual labour, Rs. 100 crore on machinery and fuel and Rs. 90 crore on pesticides and fertiliser.
“Coolies cannot wait more than a week for getting their payments. On the other hand, the farmers are not having hard cash in their hands because of the latest situation. We will seek relief to the farmers from the Centre,” said P. Chengal Reddy, senior leader and adviser to the Confederation of Indian Farmers’ Associations (CIFA).
‘Traditional credit systems under stress’
Mr. Reddy told The Hindu that the entire institutional and private credit systems were under stress now and the farmers’ problems should be immediately resolved by providing relief as the demonetisation effects seem poised to continue for more months as expected.
The agricultural seasons in Nellore district are peculiar to this region. During the previous season, the paddy farmers produced nearly 30 lakh metric tonnes in the district. Most of them sold away the produce and encashed it but the demonetisation came as a shock to them.“The farmers are forced to stand in queues for long hours at the banks. They are not able to find enough time to go to the fields and arrange for the ploughing, transplantation of paddy saplings and other activities,” said Ch. Koti Reddy, president of the Nellore District Farmers’ Association.
Jonnalagadda Venkama Raju, a senior farmer and president of AP Rythu Sangham, said the traditional local credit systems were badly hit because of this development and the demonetisation of old notes should be withdrawn if the present agricultural crisis was to be resolved immediately.
