Telangana rural economy badly hit by demonetisation: IAS panel's report

In cotton plantations, no wages have been paid to workers, which created a fall in overall production. The report also pointed out that sowing of rabi crop has not yet begun

Telangana rural economy badly hit by demonetisation: IAS panel

The rural economy of Telangana state had been badly hit by demonetisation, says a report by a central committee headed by Reddy Subrahmanyam IAS.

The 81 bureaucrats, who were assigned by the Centre in teams of three to study the impact of demonetisation on the ground, have highlighted the negative impact on the farm sector in the sowing season and loss of livelihood.

The report observed that rural people tend to hoard Rs. 100 notes, which was having an adverse impact on liquidity. Agricultural produce was being sold at lower prices due to non-availability of cash and wealthier farmers are not bringing harvest to the market. Farmers producing fruits and vegetables have been hit severely.

In cotton plantations, no wages have been paid to workers, which created a fall in overall production. The report also pointed out that sowing of rabi crop has not yet begun. Power loom industry also got hit badly. The state’s finances experienced a drastic fall, which is expected to cause a loss of Rs. 3,000 crore.