This story is from November 18, 2016

Farmers stare at uncertain future

Farmers stare at uncertain future
Representative image
ALAPPUZHA: Kuttanad farmers are likely to put on hold Puncha farming (3rd paddy crop) on account of the cash crunch caused by the scrapping of Rs 500 and Rs 1,000 notes by the Union government. The government's move had come even as about 3,200 farmers were gearing up for cultivation at around 27,000 hectares in the region. Some had completed sowing in around 5,000 hectares.
But all the preparations will come to a grinding halt as none of the farmers have enough money with them to begin farming. According to estimates each farmer needs at least about Rs 23,000 per acre to meet the expenses.
“During the second round of paddy cultivation, the farmers faced huge threats from pests. Yet, the yields were good. Each farmer produced at least eight-nine tonnes per hectare. Now, the state government owes them Rs 52 crore-the price of the procured paddy . Because of the cash crunch, it will not be easy for the farmers to get the money from the government through banks. So, Puncha farming, which was set to begin in November, will now take place only after two-three months.“ said principle agriculture officer A G Abdul Kareem.
“To grow paddy, most of the farmers also need to take loans. Usually, they depend on the co-operative societies in the region. However, the cooperative societies are paralyzed and there are no ways for the farmers to get loans. Moreover, they haven't received their dues from the government as well. The farmers have to repay their loans taken for the second round of cultivation. They will be forced to pay up interest if they delay the payment. In short, they are in big trouble,“ said Kuttanad Vikasana Samithy executive director Fr Thomas Peelianickal.
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