Hope a failed harvest for farmers as cash runs dry

More than 50 days after demonetisation, farming remains hit by the twin blow of a continuing cash crunch, which is making crop inputs such as fertilizers difficult to procure, and rockbottom prices of produce.
TOI travelled across a 400km slice of south-western Uttar Pradesh flanking the Yamuna and found farmers simmering with anger at the damage caused by the move.
Cash shortage had led to vegetable prices crashing, delayed wheat sowing and inadequate inputs for winter crops as well as a fall in wages.
Among the more marginalised sections such as small farmers, brick kiln workers, small vendors, construction and casual labourers, the effects were magnified and severe.
Post December 30 — the cut-off date announced by the PM for a transition to better days — the situation doesn’t appear to have changed much.
Queues continue at many village banks, stoking worry among farmers for their winter crops. This ground reality appears to contradict the optimism expressed by the finance minister that increased sowing this year was an indicator of farmers’ “support” for demonetisation.
In Aligarh, Mathura and Agra, normal wheat sowing is done in the first fortnight of November. Because of the sudden note ban, it was delayed by 15-20 days, said farmers at Managarhi village in Mathura district. “We used stored grain for sowing since there was no cash for buying. Other expenses are pending. Now the worry is, how to water this crop and arrange for fertilisers?” said Raj Kumar, who has sown about five acres.
The same worry haunts farmers in Etawah and Auraiya, although their normal sowing time is in the first week of December. Sadan Kumar from Ekghara village in Etawah has also used stored grain as seed and plans to use less fertilizer. Irrigation is a bigger concern because mostly pumps are used and this requires cash for diesel. For those who don’t own a pumpset, buying water is a major expense at Rs 4,500 per acre, said Kundan Singh in Mathura.
That the rabi crop is not getting required inputs of seeds, fertilisers and pesticides or fungicides is confirmed by traders. Sanjeev Yadav in Saifai and Ram Khilona Mishra in Bakewar are vendors of agri inputs. They told TOI that “sales were down 30- 40%” despite them offering some credit facilities.
From Mathura in the west to Auraiya in central UP, growers of cauliflower, brinjal, potato, chillies, tomatoes, etc told TOI that vegetables sold for one fourth to one tenth of expected prices after note ban.
“We have never seen such a time,” said 80-year old Saudan Singh from Mitholi village in Mathura who sold his brinjal harvest for just 80p per kg and tomatoes for Rs 3 per kg in November.
In Ankodia village in Etawah, Anoop Kumar said that cauliflower went for just Rs 5 per kg while potatoes dropped to Rs 2-3 per kg. While the kharif harvest of paddy and pulses like arhar was sold for lower prices in mandis, transactions were mostly done in the old notes till December end.
As long as petrol pumps were allowed to accept the old notes, farmers would use payments from wholesale traders to buy diesel, said a trader in Etawah.
But across the Chambal river near Etawah, in Bhind, MP, where the main crops are less water-requiring bajra, moong, urad and til, the mandi wears a haunted look as farmers are not selling their produce because they don’t want to be paid in cheques. E-transactions are virtually absent.
Says Akhtar Khan of Khanpur village in Auraiya, “I haven’t sown my four bighas. It is located near a forest area and requires a lot of care. Where will Iget the cash for all that?”
(This report is the first of a three-part series)