Demonetisation effect: Farmers forced to dump their produce due to price fall

Demonetisation has taken a toll on rural economy and farmers across India are battling a steep fall in prices of farm goods after demonetisation.

Demonetisation effect: Farmers forced to dump their produce due to price fall

Demonetisation has taken a toll on rural economy and farmers across India are battling a steep fall in prices of farm goods after demonetisation.

The cash crunch in the economy due to demonetisation of high value notes has resulted into fall in wholesale vegetable prices and farmers are left with no option but to discard their produce. The decision to demonetise Rs 500 and Rs 1000 notes on November 8, came at a time when farmers reaped a bumper crop and were hoping for good returns to make up for losses induced by two straight drought years.


Farmers from Andhra Pradesh, Uttar Pradesh, Madhya Pradesh and Bihar who tried to sell farm goods in the market had to return home with disappointment. According to Hindustan Times in Bowenpally market of Secunderabad tomatoes were sold not more than Rs 2 per kg. Farmers who spent Rs 4 per kg to kg to raise the tomato crop and another Rs 2 per kg to transport the produce to the market, in frustration, had dump the crop in the market yard, before cursing the traders and market authorities.Some vendors picked up tomatoes for free, while cattle feasted on the remaining dump.

The situation is similar in Uttar Pradesh and Madhya Pradesh where state governments had to approach several potato-deficit states, offering them to lift surplus potato from the state at an affordable rate in a bid to help its farmers get a better price.

Same is the plight of onion farmers in Madhya Pradesh where many are abandoning their produce and the main culprit appears to be demonetisation, say those associated with the trade.

In Bihar high cauliflower yield coupled with a cash crunch after demonetisation has sent wholesale prices crashing. Farmers in Patna, Vaishali, Muzaffarpur and other districts are forced to sell produce at throwaway rates.