Paddy farmers in distress as no takers for produce

Vijayawada: The acute cash crisis triggered by the Prime Minister Narendra Modi’s surgical strike against black money casts a shadow over the khariff harvest in the Krishna and the Godavari deltas.

The growers are forced to defer harvesting paddy crop for want of cash to engage workers.

The cash woes faced by MVS Nagi Reddy from Nandivada in Krishna district, replicate the plight of the growers all over the delta.

“ I have been restricted to draw not more than Rs 4,000 a week. But I desperately need. “I have to harvest of paddy in 15 acres and need around Rs 1 lakh immediately to go ahead with my harvest plans.

I am clueless as to how to earn such a huge amount in casht” he said. The digitisation of cash transactions as being championed by Prime Minister Narendra Modi and AP Chief Minister N. Chandrababu Naidu is of little or no relevances in agriculture.

Trade in certain crops like aqua and horticulture will take place more than 90 in cash, says Peddireddy Chengal Reddy, founder chairman of the Consortium of Indian Farmers Associations (CIFA). Nagi Reddy said use of debit cards by farmers for paying wages to farm hands is not practically possible for want of e-literacy in both farmers and workers.

Farmers are desperate to sell their produce and repay the loans, but as each day passes, their hopes is vanishing as there are no takers.

On the other hand, fear of unexpected rains also looms large as December is prone to cyclones in delta area.

They are facing severe difficulties as 80 per cent of cash transactions have stalled in rural areas and the situation has become worst for the last five days.

Farmers in the State need at least Rs 2,000 crore immediately to complete the harvest. At least Rs 5,000 is needed for an acre to harvest.

Paddy is grown in 18 lakh acres in Krishna and Godavri deltas. As per rough estimate, there will be 35 lakh tonnes of paddy yield in each season in the deltas.

However, agriculture sector is the worst victim of Union government’s demonetisation move as there would be hectic activity in farm sector from November.

Farmers of Krishna and Godavari delta area are mostly depend on migrated labour from north Andhra and other districts like Guntur and Prakasam.

Farmers are now unable to procure workers for harvesting operations as the latter demand wages in cash only.

Paddy cultivation is under the control of tenant farmers in more than 80 per cent of the delta regions as a result of absentee landlordism.

But banks stopped gold and rabi crop loans to farmers for the last three weeks while Primary Agricultural Cooperative Credit Societies are prohibited from undertaking transactions by the RBI after demonetisation.

Despite the announcement of the Centre and the RBI on giving priority to rural areas in cash distribution and farmers, the situation is completely different appears to be quite contrary.

Several banks are downsizing the limit of cash withdrawal from Rs 2,000 to Rs 4,000 for a week as against the initial promise for Rs 24,000.

On the other hand, rice millers, who traditionally extend loans to farmers to meet agriculture expenditure as an advance, have now stopped paddy purchase due to cash crunch.

A rice miller in Agiripalli mandal said, “We are also facing difficulties due to decrease in cash transactions. It is difficult for us to buy paddy and pay money to farmers now.”

Andhra Pradesh Rythu Sangham general secretary P Peddi Reddy said about 60 lakh tonnes of paddy remained in fields due to millers stopped purchasing of paddy.

“Banks and even private money lenders did not give loans to farmers.

Farmers and farm labour are facing difficulties in the absence of money transactions,” he said. He demanded the State government take immediate measures to purchase paddy from farmers.