On account of demonetization of 500 and 1,000-rupee notes, the agriculture commodity prices have declined considerably, since farmers undergone the burden of the unexpected government action to check black money. Farmers are of grave concern looking forward the harvest season and the country is also looking a record monsoon crop, while they too admit the positive impact on growth and inflation in the long run.
There is a common panic among small and marginal farmers, who had newly harvested their paddy crop, and were planning for the next Rabi season. They are of fear that in absence of new currency notes they will miss out on the crucial sowing time.
However, Farmers were severely affected because they had to either accept the demonetized notes or they undergo delayed payment on their produce. Many farmers who planned to buy inputs to plant rabi crops from wheat to chana with their receipts, also felt being duped by shopkeepers who demanded higher rates for seeds against accepting Rs 500 and Rs 1,000 notes. Also the farmers worry under concern that that prices may go down further in the short time.
Most of the dealings among farming community is done in cash and a few percent of labourers have bank accounts. Now these labourers will now have to stay longer for few extra days before their dues in cash are cleared. This may impact their lifestyle and will have to make purchases on credit.