Note ban has caused Rs 20,000-50,000 per acre loss to farmers

New DelhiIndias cashdriven agri sector continues to reel under the effects of demonetisation with farmers growing fruits and vegetables suffering huge losses say farm leaders who want the Union budget to compensate them for these lossesAmid reports of farmers dumping or refusing to harvest crops like tomatoes and peas due to a crash in prices as traders did not have the cash to purchase the produce farmer leader Ajay Vir Jakhar said Farmers growing perishables like fruits and vegetables have suffered losses of Rs 20000 to Rs 50000 per acre on an averageThe loss is huge Jakhar Chairman of Bharat Krishak Samaj Farmers Forum India told IANSExplaining the very bad situation farm leader Sudhir Panwar President of Kisan Jagriti Manch told IANS When the trader says that there is no money to purchase the crop what is the way out for the farmer Either sell at throwaway prices or dump the crop Fresh produce like vegetables and fruits are sold in cash he said adding that the trade remains affected even twoandahalfmonths after the government scrapped highervalue currency notes on November 8Cheques are not used And farmers are not entering into the new economic system going cashless that Prime Minister Narendra Modi has proposed The result is a dip in prices added Panwar also member of the Planning Commission of Uttar PradeshAccording to Jakhar who is also Editor of agriculture magazines Farmers Forum and Krishak Samachar If the cost of harvesting the crop is as much as sowing then the farmer will not harvest If a farmer takes his produce to the market and it is not sold or the price is very low he may dump the produceDemonetisation has also severely impacted the future of cooperative banks says Jakhar a farmer from Punjab adding that farmers are hoping that Prime Minister Modi will compensate the loss in some way in the Union Budget on February 1 In the face of criticism that the move to scrap Rs 500 and Rs 1000 notes had hit the Rabi sowing season the government has maintained that in fact Rabi sowing winter crop acreage had gone up this yearWhile Panwar noted that the Rabi sowing acreage figures is data collated by the government Jakhar does not think that sowing acreage was impacted due to demonetisation but he pointed out that the comparison is with a drought year He added that Rabi sowing costs have gone up and the quality gone down What the government is telling us indirectly through this higher Rabi sowing figure is that money is not necessary for sowing Panwal saidOtherwise how could a BJP MP say that the note ban helped farmers to correct their budget or suggest they were spending money on alcohol etc he said referring to BJP MP and Kisan Morcha President Virendra Singh who said earlier this month that the biggest benefit of demonetisation was that it helped farmers avoid fizul kharchi wasteful expenditure This means the farmer can fare better without money he added with a touch of sarcasmFor sowing farmers purchase seeds and when they do not have cash they use seeds saved at home No good variety of seeds was used this year or fertiliser The sale of certified seeds and fertilisers was lower due to the note ban said Panwar Farmers use inferior or old seeds and less inputs thus quality is hit he says Demonetisation has not only hit agriculture but also Indias vast informal sector artisans semiskilled workers house construction workers etc that accounts for around 45 per cent of the GDP and nearly 80 per cent of employment says Panwar The vast informal sector was not paying tax it is true But they were providing employment and wages and these units in the informal sector have closed down due to the cash limit he saysNow the stand of the government is that no one should operate without paying tax The main purpose of this exercise demonetisation is that And so they have shut down their units and those who were earning wages are now sitting idleWhile the cash situation has eased the job scenario continues to remain bleak says Panwar adding that the note ban effect will be felt for quite some time