Demonetisation changes taste of oranges: Fruit gardens and orchards face losses

The orange garden and orchards are seeing red in this winter. Due to continued cash crisis the orange gardens are suffering a lot as they are facing an acute shortage of cash following the demonetisation drive by the central government.

Even though the withdrawal limit has eased the cash crunch in the economy, but still it had no positive impact on the sales of oranges.

The garden owners claim that there is no money in the market due to demonetisation and this might affect next season's production too.

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MONICA GHISHING, GARDEN OWNER

Enlisting the problems being faced by the garden owners in general, Monica Ghishing, a garden owner in Siliguri, said, "Two years ago, the production was really nice and then for two continuous years, our oranges were not that good. This season, there are a lot of oranges, but due to demonetisation, the people who come to buy these oranges are not giving us good rates.

"By the end of the month, we will have to pick all oranges, otherwise the trees will get destroyed. So if no one comes to buy, we will have to sell the oranges at a subsidised rate.

"If I do not get the correct price for all the oranges I have, we will face a huge loss because we need money for maintenance and to pay for the labourers. This season, I think, we will have to bear a big loss.

"Even when we go to the banks we are facing a lot of problems, so the people who are coming to buy must also be facing problems in withdrawing money in huge amounts. So it would be of great help if this problem ends soon because orange gardening is our main cultivation and our main source of income throughout the year."

From the producers to the retailers, the entire chain of supply has been disrupted due to demonetisation, and everyone understands that no one amongst them is to be blamed, as they are all sailing the same ship.

AJOY KR PRASAD, WHOLESALER

A wholesaler, Ajoy Kr Prasad reinforced, "The problem is circulating around cash. Say if I buy the oranges and take it outside for selling, we are not getting much payment for it.

"Now payment to the farmers and labourers it is not possible to recieve payments in cheque. They only want cash payments which we cannot give. Our business is running into losses.

"Our business depends on the season and it's not like if later we have cash, our problems will come to an end because after January, the season will end and so our earning time is only this time of the year.

"We cannot keep the products with us otherwise they will rot and then they won't have any value, we cannot keep them on the trees and also so we have to sell it at whatever price, high or low, we get."

The wholesalers are not being able to withdraw cash from the banks and since this industry heavily relies upon cash transactions at grass-roots level, it has taken a bad hit. However, these problems did not stop with the wholesalers as even the retailers too, were equally affected.

SRABAN KUMAR SAHU, SILIGURI RETAILER

"This time supply is good, but then the question is of the currencies that have been demonetised. The banning of Rs 500 and Rs 1,000 notes has limited the supply of goods that come over from the mountains.

"That is because the dealers there are not accepting Rs 500 and Rs 1,000 notes, they ask for smaller denominations which are not available in the market and that is why the amount of oranges that come is really less which has resulted in the market not doing well."

The ripple effect of cash crunch due to demonetisation has been felt throughout the supply chain of the orange industry.

This has been the case of most industries which have been heavily dependent on cash transactions and now hopes are pinned on the Budget with some relief, especially for the fruit industry to bring them in better shape.

With inputs from Angshuman Chakraborty in Siliguri.

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