Demonetisation: Farmers dump their produce after fall in prices over cash crunch

cash crucnh

New Delhi, December 27: Post demonetisation, a steep decline in the sales was witnessed all across the country, especially farmers are battling the most with the fall in the wholesale vegetable price.

The price hit was so hard that they were forced to dump their produce amid the struggle to get the cash.

In contrast, the time of the year when this news is reported farmers generally hope for good returns every year.  This year however after the note ban the story is turned upside down.

Andhra Pradesh
As per reports of Hindustan Times, last Wednesday, when S Raju, a farmer from Anantapur district, brought nearly two tonnes of tomatoes to Bowenpally market in Secunderabad all his produce went null. He had to return home with empty hands.

Raju expressed that he spent nearly Rs 4 per kg to raise the tomato crop which cost him another Rs 2 per kg to transport the produce to Secunderabad, more than 400 km from Anantapur.

But he was shocked when traders at Bowenpally offered not over Rs 2 per kg for his crop.

Raju realised the price quoted was not sufficient even to meet the transportation cost, as he had to travel back to Anantapur.

Frustrated, he unloaded boxes of tomatoes and dumped them in the market yard, before cursing the traders and market authorities. Some vendors picked up tomatoes for free, while cattle feasted on the remaining dump.

“Apparently, he has come all the way to Hyderabad, because tomato prices came down drastically in Anantapur market,” Srinivas, a local commission agent, told the media.

The situation is almost same in other parts of Rayalaseema that are known for production of tomatoes.cash crunch1

Uttar Pradesh

The state government has visited several potato-deficit states, offering them to lift surplus potato from the state at an affordable rate in an effort to support farmers to sell their produce.

The government move comes amidst prevailing low prices of potato that have added to the plight of farmers. “The state government has written to potato-deficit states like Karnataka, Kerala, and Tamil Nadu, telling them they can procure potato from UP,” horticulture director SP Joshi said.

Joshi also accused farmers, saying they erred in anticipating the price. “Potato was selling for Rs 1,500 per quintal till July-August but most farmers chose to sit on the stock, guessing the price will go up further. That did not happen and a new crop of potato from within and outside the state also arrived, compounding the price situation,” he explained. UP accounts for 35-40 % of the country’s potato production.

Madhya Pradesh
For the second time this year, onion farmers of Mandsaur-Neemuch were selling their crop for as low as Rs 1 per kg. Disappointed with the impact of the note ban, an official said small traders, who bring in supply from marginal farmers, have vanished due to cash crunch and big traders seem to have formed a cartel.

Cashless transactions could bring traders under the I-T department’s scanner — which they don’t want — the official added.

State horticulture director Satyanand, however, blamed local factors for the crash, saying there was no spike in supply. In April, the government procured onions for Rs 6 per kilogram after prices fell to 25 paise per kg in Neemuch.

Lalaram Bhatt, a farmer, was in tears after hearing about the price crash. “We are already facing cash shortage problems due to demonetisation and this fall in onion prices is a double blow. At these prices, we won’t be able to pay even for transport,” he said.

Bihar
High cauliflower yield coupled with a cash crunch post demonetisation has sent wholesale prices crashing in Bihar. Farmers in Patna, Vaisali, Muzaffarpur and other districts are selling their produce at low rates to get some profit. On Saturday, the price of the seasonal vegetable was witnessed its lowest — Rs 10 – Rs 15 per kg — in major retail markets. In wholesale markets, the price was almost one-third.

“This time, there has been a bumper production, especially in the last leg of the harvest. This is probably the reason for falling prices,” said Ranjeet Kumar, a vegetable retailer.

 Wefornews Bureau

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