Demonetisation Hits Farmers

The cash crunch caused by demonetisation has affected farmers badly. Prices in consumer markets are higher, but in villages there are no buyers for the harvested crop. Inventories of commodities are piling up due to lack of buyers in the village markets. At the same time, traders are buying from farmers in Himachal Pradesh at a rate of 20%–25% lower than the normal price and paying by cheque, which can be realised only after 15 to 20 days. However, farmers have to pay their input dealers and labourers in cash.

Fruit and vegetable farmers are badly hit, cotton farmers are in chaos, and prices have soared by 10% in terminal markets after demonetisation, without benefiting the farmers.