The demonetization which affected all sections of society, also impacted the farming community as the traders were not providing liquid cash to farmers after purchasing their produce.
Following ban on Rs. 1,000 and Rs. 500 currency notes, the traders were forced to give cheques to farmers at various agricultural marketyards in the district.
Farmers after collecting cheques from traders were found struggling to withdraw huge amount for taking up rabi crop. As bank authorities were allowing them a withdrawal of Rs. 10,000 at a time and Rs. 24,000 in a week time, it has become a herculean task for the farming community to clear the dues with regard to purchase of seeds, fertilizers, pesticides and also give wages to labourers.
Welcoming the Union Government’s decision to ban high denomination currency notes, a farmer Srinivas from Sriramulapalli village, however, said that “I had cultivated paddy in three acres and incurred Rs. 1.5 lakh for the cultivation. But, the traders after purchasing my produce handed a cheque. How could I withdraw the entire cheque amount and clear my debts when the banks have imposed several restrictions on withdrawal of cash,” he questioned.
Rajaiah, a farmer from Bahupeta village, said that “we can take up the rabi farming operations only if we get the liquid cash at once.”.
A bank manager said that farmers were reluctant to visit banks and deposit their cheques as they were worried that banks would debit their crop loan amount. The agricultural market committee authorities suggested that the government ensure one-time payment of cheques for the farmers after showing the proof of purchase of their farm produce to the banks.
Traders give cheques to farmers at various agricultural marketyards
