The cash crunch in the wake of demonetisation has aggravated the problems of farmers already reeling under a prolonged dry spell in Prakasam district.
The farmers will have no option but to go for crop holiday during the rabi season if the Central and State governments do not intervene to restore liquidity and make available all farm inputs on credit basis, says a group of farmers at remote Boddulurvaripalem which has no scheduled commercial bank branch.
Farmers of this drought-prone district depend mainly on the North East monsoon for cultivating bengal gram, black gram and chilli, among other crops.
Overseeing transplantation of paddy seedlings by farm workers in a reduced cropped area at least for personal consumption, a farmer —B. Hanumantha Rao —with a 50-acre land holding, says: “I am badly in need of Rs. 10 lakh in cash to carry on farm operations unhindered. But I am allowed to withdraw only Rs. 6,000 in three spells in the last one week at a bank branch at Karavadi village where I have an account.”
Another farmer, B. Gangaiah, laments that he had deposited in bank the money he got after selling tobacco, bengal gram and paddy last year. “Leave alone sanctioning fresh crop loan, bank officials are not allowing me to withdraw the Rs. 3 lakh in cash in my account to take up farm operations now,” he laments.
“We are fortunate that farm workers have stepped into the fields and agreed to take payments after the cash crunch eases,” he adds.
Meanwhile, Ch. Lakshminarayana, a farmer from Ulichi, who procured bengal gram seeds before demonetisation was announced, says he has decided to go for a crop holiday this year. “Fearing holding back the scrapped notes, I have deposited all of them in the bank, but I have permitted to draw just Rs. 6,000 this week. How can I carry on farm operations with this paltry sum?” asks another farmer Ch.Mallikarjun.
Meanwhile, Agriculture Joint Director J. Muralikrishna says the crop coverage was only 15 per cent of the normal extent of 3,20,878 hectares so far. In the case of bengal gram, the cropped area was 13,400 hectares this year as against 3,400 hectares during the same period last year as Krishna water is available in the canals this year.
The department had distributed among farmers 70,000 quintals of subsidised bengal gram seeds as against the target of 80,000 quintals, he said, hoping that the cropped area of bengal gram would go up to one lakh hectares in a fortnight or so.
