Kozhikode: The steep fall in the prices of pineapple in the retail market in the wake of the demonetisation drive has severely hit farmers, forcing them to downsize their workforce.
Ever since the demonetisation of high-value currency notes, the price has remained stagnant at around ₹20 a kg. In early November, it was ₹27. Farmers say the poor price, that too during peak season, will push hundreds of growers who had rented land to raise pineapples availing bank loans, into deep financial crisis.
Baby John, a farmer who cultivates pineapple in Thiruvambadi and Thamarassery regions, says he now depends on a downsized migrant labour force of 180 to manage the farm. “I cannot pay their wages in liquid cash now,” he said. “So, I have reduced my workforce from 250 to 180,” he added.
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Majority of labourers working on pineapple farms are migrants from the States of Odisha, Jharkhand, West Bengal, and Assam. Owing to currency crunch, most of them have been sent back home, farmers say. However, some migrant workers have managed to find odd jobs.
Pineapple Farmers Association data show that the fruit is raised in 13,000 hectares in the State, and the production capacity is around 3.25 lakh tonnes a year, valued around Rs.650 crore. Association members pointed out that the unexpected fall in prices during peak season would badly impact the annual turnover.
According to farmers, the business will be profitable only if retailers offer at least Rs.30 per kg. “Even if the market price is low, we will be forced to sell off the produce as it is perishable, while large-scale storage facility is not a practical idea,” they add.
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