GOVERNMENT OF INDIA
MINISTRY OF AGRICULTURE AND FARMERS WELFARE
STARRED QUESTION NO-183
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?
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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