GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
RAJYA SABHA

STARRED QUESTION NO-183

ANSWERED ON-02.12.2016

Countering the effects of demonetization of currency notes on crop sowing

183 . Shri Rajkumar Dhoot

(a) whether Government is aware that demonetization of currency notes has adversely affected the sowing of crops during the current sowing season in Maharashtra and other parts of the country as farmers are unable to purchase seeds, fertilizers, pesticides, etc. due to lack of money, if so, the details thereof; and

(b) the immediate remedial measures Government has taken or proposes to take in the matter?

ANSWER

MINISTER OF AGRICULTURE AND FARMERS WELFARE

(SHRI RADHA MOHAN SINGH)

(a) & (b): A statement is laid on the Table of the House.

STATEMENT IN RESPECT OF PARTS (a) & (b) OF THE RAJYA SABHA STARRED QUESTION NO. 183 FOR 02.12.2016 REGARDING COUNTERING THE EFFECTS OF DEMONETIZATION OF CURRENCY NOTES ON CROP SOWING.

(a): The total area sown under five major crop categories till November 29, 2016 was 408.22 lakh hectares, 8.03 percent higher than the 377.86 lakh hectares in the same period last year of which wheat had been sown on 168.06 lakh hectares compared to 149.86 lakh hectares in the same period last year. The area covered under pulses is 111.60 lakh hectares compared to 99.71 lakh hectares in the same period last year. The area covered under oilseeds is 70.67 lakh hectares compared to 62.26 lakh hectares in the same period last year. The area covered under coarse cereals is 44.58 lakh hectares compared to 51.24 lakh hectares and rice area declined to 13.31 lakh hectares from 14.80 lakh hectares.

(b): Remedial measures taken include:-

(1) The Farmers are permitted to draw upto Rs.25,000 per week in cash from their Know your Customer (KYC) compliant account subject to the normal loan limits and conditions. This facility will also apply to the Kisan Credit Cards (KCC).

(2) The farmers who receive payments in their bank accounts through cheque/RTGS for sale of their produce in the APMC markets/mandis will be permitted to draw upto Rs.25,000 per week in cash.

(3) The Government has allowed farmers to use old Rs.500 denomination notes for making payments towards purchase of seeds from the centres, units or outlets belonging to the Central or State Governments, Public Sector Undertakings, National or State Seeds Corporations, Central or State Agricultural Universities and the Indian Council of Agricultural Research, on production of proof of identity.

(4) NABARD would be making available Rs.21,000 crore limit to District Central Co-operative Banks through State Cooperative Banks for Rabi Agriculture Operations. This will enable the DCCBs to sanction and disburse the crop loans to the farmers through a network of primary Agriculture Co-operative Societies (PACS).

(5) RBI and Banks have been advised by GOI to make the required cash available to the DCCBs. This will ensure quick flow of credit and required cash to the farmers during the current Rabi seasons. RBI has advised all the eligible institutions that around Rs.35,000 crore will be required by DCCBs for sanction and disbursement of crop loans to the farmers @ Rs.10,000 crore per week. Adequate currency may be made available to DCCBs for the purpose. GOI has advised RBI and Commercial Banks to prioritise availability of adequate legal currency to the DCCBs to meet their cash requirement.

(6) The availability of certified/quality seeds and fertilizers for the current Rabi season is adequate in the country.

(7) The Government has issued advisory to all State Governments for instructing Cooperatives/Private Retailers/Whole Salers to provide fertilizer to provide fertilizer on credit and accept all modes of payment mainly credit card/debit card/cheque etc. for ensuring fertilizers availability as per demand. Fertilizer suppliers have been asked to extend the credit period by one month in addition to the prevailing credit period to their whole salers/dealers/retailers

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One response to “Measures to Counter effects of currency demonetization on crop sowing”

  1. hemen parekh says:

    For Want of a Nail
    We have all heard the story of a king who lost a battle for want of a nail – the nail that came off the horse-shoe and stranded the king , in the middle of the battle
    That entire saying goes like this :
    ——————————————————————————————————

    For want of a nail the shoe was lost.

    For want of a shoe the horse was lost.

    For want of a horse the rider was lost.

    For want of a rider the message was lost.

    For want of a message the battle was lost.

    For want of a battle the kingdom was lost.

    And all for the want of a horseshoe nail.
    ——————————————————————————————————-
    Let me reconstruct this in the current context :

    # The Kingdom : Indian Economy
    # The Battle : Black Money
    # The Enemy : Tax Evader
    # The Horse : Demonetization
    # The Rider : NDA Government
    # The Message : Return OLD notes
    # Horse Shoe : Rs 2000 Currency Note
    # The Nail : RFID micro-chip ( one fiftieth thinner than hair ) , costing 30 paise
    ———————————————————————————————–
    HOW IS THIS BATTLE SHAPING UP SO FAR ?

    Just open your morning news paper or your favorite TV Channel , to listen to the tales of sufferings of poor people – and forecasts of a dark Economy , in respect of :
    Perishable articles rotting / Aggregate Consumer Demand getting depressed / CPI – Inflation reducing / Money Supply shrinking / Transport coming to a Standstill / Real Estate prices dropping / Commodity prices deflating / Interest Rates likely to be lowered by 25 bps / Bulk Deposit rates being reduced / Huge liquidity in Banks becoming a burden / CRR and MSS to help out with excess liquidity in banks / GDP growth to come down for next two quarters / GDP growth to drop by 2 percentage point , next year / Note printing rates too low / It will take 12 months to replenish the Rs 500 / 1000 notes / Mfg PMI tanking / ATM re-calibration just too slow / Withdrawal limits are draconian / Farmers are committing suicides / Mobile Wallets are ushering a CASH LESS economy / Credit – Debit cards being used by poor / UPI is the only long term salvation / Black Money will flow to Gold and property / Marriages getting postponed / Patients suffering after denial of emergency aid / Healthcare in shambles / Auto-Tractor – Car sales down / Retail sales down by 50 % / Jobs getting lost….etc
    Surprisingly , in all of these sufferings , only a few people are saying :
    ” Earlier , it was difficult to carry Rs 10 lakh in your shirt pocket because it took 1,000 notes ( of Rs 1000 each ) , weighing a total of 1000 grams ( 1 kg )
    Now you need to carry only 500 grams ( of Rs 2,000 notes ) !
    In less than a year , Tax Evaders will start ” Corrupting ” the economy with Rs 2000 notes and we will be back to square one of a new parallel economy – credit cards / debit cards / mobile wallets / PoS – Card Readers , notwithstanding ! ”

    EVEN AT THIS STAGE , CAN ANYTHING BE DONE TO WIN THE BATTLE ?

    Most certainly ! By putting the NAIL in the HORSE SHOE !

    By ” Embracing The Inevitable ”

    Dear Shri Narendrabhai :

    It is NOT too late !

    with regards,
    hemendra parekh
    —————————————————————————————————-
    06 Dec 2016

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