India: Demonetization hurting sales and prices for farmers

After the move to Demonetization in the country, agriculture is taking a big hit. While many other industries use other forms of payment, the agricultural industry, composed of farmers, has a history of being cash-based. Farmers are suffering major losses due to the change, as sales have gone down and prices have shot up. Some farmers have incurred a loss as high as 60-70 percent.

As rural areas struggle to get by, there is little hope of a speedy recovery. Shirram Gadve, president of the Vegetables Growers Association of India (VGAI), said the price of vegetables has dropped by almost 60 per cent across wholesale markets.

“Whatever sale is happening right now, it is distress sale, and that’s causing major losses to the farmers,” he said.

“On average, an acre's worth of vegetables during this month fetches us Rs 1 lakh, but this year we have received only Rs 30,000 for that… it’s such a loss,” said Gadve

source: indianexpress.com

1 RS = 0.0148487 USD
1 lakh = 100,000

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