The agricultural and business activities in rural areas in the district that have limited access to banking facilities, have suffered serious setbacks owing to the demonetisation of currency of Rs. 1,000 and Rs. 500 denomination.
Arecanut processing
Naveen Kashyap, an arecanut grower from Daanawadi village, told The Hindu, that the work of de-husking, drying and processing of arecanut has commenced in command areas of Bhadra reservoir.
However, owing to the demonetisation, plantation owners are finding it difficult to arrange money for payment of wages to workers. The paucity of cash has forced the plantation owners to postpone the work of de-husking and processing of arecanut, he said.
A majority of agricultural labours have remained outside the purview of the formal banking system as a result of which payment through cheque or electronic fund transfer cannot be made to them.
‘Exemot farmers’
The government should exempt farmers from the ceiling imposed on withdrawal of cash from bank accounts and from ATMs, Mr. Kashyap said.
Suresh, a farmer from Balur village in Shikaripur taluk is also facing a similar problem.
The harvesting of maize crop on his land and the work of levelling of land on another plot owned by him, where he was planning to plant arecanut saplings, has been delayed owing to paucity of cash.
Decline in orders
The food industry in rural areas is the worst affected owing to demonitisation. Eshwaran P. Teertha, an entrepreneur from Kudligere village, who runs a food firm involved in producing wide range of products from millets and native rice varieties said, there has been a decline in orders from hotels and supermarkets in urban areas for his products from past three days.
The payment for those supplying raw materials such as tender mangoes, lemon, millets, coconut and spices for food industries has also been delayed, he said.
Long queues
Siddeshwar C., who runs an outlet of electronic gadgets in Shiralakoppa, said that in Shiralakoppa it was necessary to wait in queue in the banks for at least five hours to exchange currency notes or withdraw of money from accounts.
Many in rural areas are postponing the purchase of electronic gadgets and vehicles. Those involved in electronics and automobile business in muffosil centres have suffered huge losses owing to withdrawal of currency of Rs. 1,000 and Rs. 500 denomination, he said.
Those in electronics and automobile businesses in muffosil centres have suffered huge losses
