‘Economic emergency’ hits villages

​Vijayawada: Villages are caught in an economic blockade due to demonetisation of high denomination notes. Majority of bank branches in rural areas stopped payments ompletely and farmers, especially tenant farmers are scouting for loans as the Primary Agricultural Cooperative Credit Societies (PACCS) and banks are rejecting to grant crop loans even by mortgaging gold ornaments.

Horticulture and aquaculture farmers are incurring losses with decrease in prices of fish (because of sanctions on cash transactions). Shopkeepers in villages are rejecting ustomers unless they buy provisions for at least Rs 500. With severe cash shortage, the public sector banks have failed to cater to the needs of farmers and rural people in critical juncture.

Farmers of Jonnapadu village near Gudivada town of Krishna district deposited around Rs 80 lakh in a public sector bank in their village and around Rs 40 lakh in a bank in Gudivada town recently for paddy harvesting. Paddy was cultivated in 2,000 acres in the village and the farmers need at least Rs 1.60 crore for harvesting.

According to MVS Nagireddy of the village, the bank in Jonnapadu has given only Rs 500 for each farmer on Tuesday, Rs 3,000 on Wednesday and gave nothing on Thursday and Friday. “We are clueless as we have to begin paddy harvesting within a week. Banks are rejecting gold loans and private lenders are not interested because of fear of monetary transactions. The situation of tenant farmers is worst with economic blockade in villages as it is not easy getting loan for them,” he said.

Speaking to The Hans India, Farmers’ Federation (AP) president Yerneni Nagendranath said despite deposits of farmers in banks, they were being denied to draw their savings. He also said farmers of horticulture crops, including coconut, banana, sweet orange, guava, vegetables and other crops, are not able to market their produce to other States due to sanctions on cash transactions.

“We request the government to give relaxation on buying diesel, fertilisers and pesticides. It is unfortunate to impose restrictions on buying fertilisers using banned notes,” he said. He asked the government how a farmer can manage his agricultural investment of Rs 25,000 as the expense of harvesting and other farming activities for a hectare exceeds Rs 30,000.

Farmers of large holdings are depending on paddy harvesting machines on condition that the payments would be paid in January. Devarapalli Nagesh of Sagguru village in Agiripalli mandal said that they need at least Rs 10,000 for an acre to prepare for rabi groundnut cultivation now. But, he said, getting money from banks or money lenders is not easy now.

Aquaculture Farmers Association leader Seetharamaraju said that the price dropped to Rs 5 from Rs 10 per kg of fish due to cancellation of high denomination currency. “There is no guarantee of receiving cash from traders if we export fish to other States,” he said. Fisheries cultivation in two lakh acres in Krishna district is facing a crisis now, he said.