The Finance Ministry has turned down the request of the Agriculture Ministry to permit farmers to purchase seeds using demonetised currencies of Rs 500 and Rs 1,000.
The Department of Economic Affairs cited the surge of deposits in Jan Dhan accounts to counter the Agriculture Ministry’s request for allowing demonetised currencies for seed purchase. It argued that this may become a conduit to offload black money.
It has allowed farmers to draw up to Rs 25,000 per week against crop loans.
Mohan Singh on November 15 had writted to Finance Minister Arun Jaitley seeking exemptions available to airlines, railways, petrol pumps and hospitals for all government-run seed agencies to sell seeds for rabi crop until November 24.
The country is at the commencement of Rabi sowing season and the best time to sow wheat crop is starting November until December 10, after which both quality and yield get affected. Until November 11, India had sown Rabi crop over 146.85 lakh hectares which is 23 per cent of the national target for this year.