With paucity of cash to pay labourers for harvesting work and the decline in the price of agriculture produce, farmers in rural areas of Malnad region are grappling with the after effects of demonetisation of Rs. 1,000 and Rs. 500 notes.
It may be mentioned here that immediately after the announcement of demonetisation, the prices of arecanut registered a slump by around 10 percent in the Shivamogga market. Arecanut trading had come to a standstill from November 10 to 17. Though the trading of arecanut has resumed, no improvement in the price can be seen.
Decline in yield
There was decline in the yield of arecanut in the region this year owing to moisture stress caused by drought prevalent from the past two years.
Tirthappa, a farmer from Holalur village near here, said that arecanut prices were expected to escalate owing to a decline in the yield. It is unfortunate that owing to demonetisation, there has been sharp decline in the price. The decline is attributed to confusion at multiple levels, including at firms engaged in making products from arecanut and owners of local mandis, on making payments for purchases following demonetisation.
Maize and paddy
Not only arecanut, the prices of maize and paddy have also declined owing to demonetisation. The centres involved in procuring paddy have not yet commenced functioning in the district. The price of paddy that was at Rs. 1,600 per quintal and had declined to around Rs 1,500 after demonetisation. The price of maize has fallen to around Rs. 1,310 from Rs. 1,400 per quintal.
Yogish, a farmer from Anavatti village said that middlemen, who purchase produce from the doorsteps of farmers, are citing paucity of cash as the reason for the decline in the price. He said that the government should immediately commence the procurement of agriculture produce at minimum support price to arrest the decline in the prices.
Tankachan Andrews, who is engaged in integrated farming in Ripponpet village near here, said that he had postponed the work of harvesting arecanut, ginger and tapping trees at his rubber plantation owing to the non-availability of cash to pay wages to labourers. Agricultural activities have faced serious setbacks owing to the restrictions on withdrawal of cash from banks.
Banana plantation
Mr. Andrews said that he had even postponed the work of providing additional an dose of fertiliser to his banana plants. The shops engaged in selling agricultural inputs are not accepting demonetised currency. The delay in providing additional dosage of fertiliser will affect the yield of banana.
Withdrawal limits
In the wake of commencement of harvesting activities, farmers should be exempted from the weekly withdrawal limits of Rs. 24,000 from savings accounts, he said.
