Demonetisation hits harvesting season hard in Andhra Pradesh

VIJAYAWADA: The demonetisation move has severely hit the agriculture sector of Andhra Pradesh, which is preparing for harvesting. Even though the Union government has increased the withdrawal to Rs 50,000 per week, the unavailability of cash at the rural bank branches is proving to be a death blow to farmers as the harvesting of Kharif crops has begun across the state.
P Venkat Rao, a farmer from Janardhanapuram in Nandivada mandal in Krishna district, saved about Rs 2 lakh in his account in a nationalised bank in his village for harvesting of paddy crop.However, even after 11 days of the announcement of demonetisation, he has not been able to withdraw sufficient money as the only bank in his village doesn’t have money to dispense.
“Even though my SB account has more than Rs 2 lakh, I was able to withdraw only Rs 10,000 in the last one week. The bank doesn’t have money to give to us. I immediately need the money for harvesting,” lamented Venkat Rao, who is worried about delay in harvest of his crop
.
According to information, harvesting has begun in more than 2,000 acres of the village and the expenditure to harvest paddy is Rs 6,000 – 8,000 per acre. This means, Janardhanapuram village alone needs Rs 1.2 – 1.6 crore within next two weeks as harvesting season concludes by end of November.
However, the nationalised bank, due to cash crunch, was able to give away Rs 500 per account, Rs 3,000 per account and Rs 4,000 per account on Wednesday, Thursday and Friday respectively. Even on Saturday, the bank did not have any cash to give the farmers till late afternoon pm.
Same is the case in other rural areas across the state where the farmers are unable to withdraw any money. “We have about Rs 8 crore savings in SB account and fixed deposit at a primary agricultural cooperative credit society (PACCS) in our area. But, the officials say they will give Rs 50,000 per week and even that is not given in many cases. There are 5,000 acres of paddy farms up for harvest in and around our village. But, we are not able to begin the work,” said Surendra, president of Vakkalagadda village in Krishna district. Farmers in the villages near Vakkalagadda such as Kodali, Ramanagaram, Yarlagadda, Nadakudurum Challapalli are also at their wits ends as they don’t have enough funds to begin harvesting.
Former member of Indian Council of Agriculture Research (ICAR) MVS Nagi Reddy said about 40 lakh acres of paddy are up for harvesting across the state. Other Kharif crops account to about 30 lakh acres more. “We need about Rs 4,000 crore before end of November for Kharif harvest and no bank in rural areas seems to be prepared for it. Farmers are in crisis as even in North Coastal and Rayalaseema regions, the same situation prevails,” he said.