The restrictions imposed on cash withdrawals from bank accounts and ATMs following the demonetisation of Rs. 500 and Rs. 1,000 notes has made life difficult for the district’s milk producers.
At present, 410 primary milk producers’ cooperative societies are functioning under Shivamogga Cooperative Milk Producers’ Societies Union Ltd. (SHIMUL). The union credits money to the bank accounts opened in the name of the societies. Once a week, the societies make payments in cash to its milk producer members.
However, the ceiling imposed on cash withdrawals has made it difficult for the societies, particularly those with a lot of members, to pay all the members.
For example, the milk producers’ cooperative society in Shiralakoppa has 160 members. M.N. Meenakshi, secretary of the society, said the society pays its members about Rs. 1 lakh every week. Though a major chunk of the milk producers have bank accounts, they come from remote villages and prefer to be paid in cash.
At present, only Rs. 24,000 can be withdrawn a week. This means even though SHIMUL has credited the money to the account of the society, it is unable to pay off all the milk producers. As a result, only those in dire need of cash for medical or educational reasons are being paid, Ms. Meenakshi said.
SHIMUL directive
The union has sent a circular to the societies asking them to remit payment directly to the bank accounts of their members.
Sushila Bai, a 62-year-old milk producer from Devara Narasipura village in Bhadravati taluk, does not want her money to be credited to her bank account. “The bank where I have a savings account is located 12 km from my hamlet. Also, I am not in a position to withdraw money by standing in queue for hours,” she said.
To make matters worse, a major chunk of ATMs in rural areas in the district are yet to be recalibrated to dispense new currency notes. Kallesh Naik, a milk producer from Belavanthanakoppa village, said that last week he was planning to purchase fodder for his cattle with the money to be paid by his society. But as the payment was deferred, he was compelled to borrow.
M. Nataraj, a milk producer from Shiralakoppa, said accounts of milk producers’ cooperative societies and milk producers should be exempted from the cash withdrawal ceiling.
Most ATMs in rural areas in Shivamogga not yet recalibrated to dispense
new currency
