Dip in supply of vegetables, milk from rural areas

The cash crunch following demonitisation is likely to hit the common man further as supply of vegetables and milk from rural areas has gone down drastically.

Irfan Qureshi of the Gautam Budh Nagar Wholesale Vegetable Traders’ Association said: “There is no cash in the market to maintain food supply. On an average day, over 400 trucks arrive in the Noida mandi from various parts of the country. The number has dipped to 100. In the next two to three days, this figure will reduce further and there will be no vegetables available in the market.”

He added that there are about 1,200 registered wholesalers and 5,000 unregistered vegetable sellers in Noida, but only 100 wholesalers are are still working daily. “Due to massive cash crunch, these wholesalers too will shut shop soon.

Farmers do not have cash in hand to supply vegetables and book transport. We do not have cash to buy vegetables. Now transport associations have also announced a strike in the absence of cash,” he added.

Withdrawal limit

The situation of milk supply is critical as well.

Rajender Nagar, the MD of Paras milk, which procures milk from parts of western U.P., said: “We are facing 15 per cent shortage in dairy products. We have been transferring cash to farmers, but the withdrawal limit has made things difficult. There is severe cash crunch in villages. If necessary steps are not taken, supply to metro cities will be hit.”

Farmer, Gajraj Singh, said: “We are dependent on local grocery shop owners. Our vegetables are rotting in the fields. We do not have enough storage capacity and there is no buyer for our vegetables,” he added.

(The writer is a freelance journalist)

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