Lok Sabha Question No. 816 (UNSTARRED), answered on 2017-02-07
Subject: Impact of Demonetisation on Farmers
Ministry: AGRICULTURE AND FARMERS WELFARE
Asked by: RAHUL RAMESH SHEWALE, DHARMENDRA YADAV, ANANDRAO  ADSUL, SHRIKANT EKNATH SHINDE, VINAYAK BHAURAO RAUT

## GOVERNMENT OF INDIA MINISTRY OF AGRICULTURE AND FARMERS WELFARE DEPARTMENT OF AGRICULTURE, COOPERATION AND FARMERS WELFARE

## LOK  SABHA UNSTARRED QUESTION NO.816

TO BE ANSWERED ON THE 7 TH   FEBRUARY, 2017

## IMPACT OF DEMONETISATION ON FARMERS

816.     SHRI RAHUL SHEWALE: SHRI DHARMENDRA YADAV: SHRI ANANDRAO ADSUL: DR. SHRIKANT EKNATH SHINDE: SHRI VINAYAK BHAURAO RAUT:

Will the Minister of AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंी be pleased to state:

- (a) whether agriculture is the largest informal sector of Indian economy;
- (b) if  so,  whether  the  impact  of  demonetisation  on  agriculture  has  been  assessed  by  the Government, if so, the details thereof;
- (c) whether it is a fact that price of crops has drastically gone down due to demonetisation and farmers are the worst affected by it and if so, the details thereof;
- (d) whether there is any proposal under consideration of the Government  to  give compensation to the affected farmers;
- (e) whether growth rate in farmers' income is projected to be lower due to drop in prices of perishables due to demonetisation; and
- (f) if so, the details thereof?

## ANSWER

MINISTER OF STATE IN THE MINISTRY OF AGRICULTURE AND FARMERS WELFARE कृ ष एवं कसान कयाण मंालय म राय मंी (SHRI  S.S. AHLUWALIA)

- (a): As per 2011 census data, 54.6% of the total workers are engaged in the agricultural sector.
- (b) & (c): The All India average wholesale prices of  major agricultural commodities as on 8 November, 30 November, 15 December and 30 December, 2016 are as under:

(Rs. Per Quintals)

| Commodities    |   8 Nov, 2016 |   30 Nov, 2016 |   15 Dec, 2016 |   30 Dec, 2016 |   %change in 30 Dec. over 8 Nov16 |
|----------------|---------------|----------------|----------------|----------------|-----------------------------------|
| Rice           |          2473 |           2541 |           2545 |           2544 |                               2.9 |
| Wheat          |          2152 |           2213 |           2214 |           2200 |                               2.2 |
| Gram Dal       |         11395 |          11562 |          11560 |          11404 |                               0.1 |
| Tur/ Arhar Dal |         10969 |          10704 |          10355 |           9847 |                             -10.2 |

| Urad Dal   |   11061 |   10702 |   10341 |   9954 |   -10.0 |
|------------|---------|---------|---------|--------|---------|
| Moong Dal  |    7607 |    7477 |    7430 |   7246 |    -4.7 |
| Masoor Dal |    7461 |    7389 |    7262 |   7093 |    -4.9 |
| Potato     |    1655 |    1463 |    1286 |   1135 |   -31.4 |
| Onion      |    1156 |    1230 |    1178 |   1103 |    -4.6 |

Source: Deptt. of Consumer Affairs.

The prices of agricultural commodities are determined by the market forces of supply and demand, quality of produce, seasonality etc. There is no direct link between demonetization and prices of agricultural commodities.

(d): No,  Madam.  However,  Government has  taken  several  steps  to  ease  the  pressure  on farmers due to the recent demonetisation. These include, inter-alia, enhancement of withdrawal limit  for  farmers to upto Rs. 25,000/- per week in cash from their loan (including Kisan Credit Card limit) or deposit accounts; interest waiver of 60 days (November and December, 2016) on all  short  term  loans  availed  from  Cooperative  Banks  between  01.04.2016  to  30.09.2016; additional grace period of 60 days as prompt repayment incentive @ 3% for farmers whose crop loan dues fall between 01.11.2016 to 31.12.2016 etc.

(e) & (f): The income of farmers /agricultural households in the country is estimated by the National Sample  Survey  Office (NSSO)  through the 'Situation Assessment  Survey  of Agricultural Households' conducted from time to time. The NSSO had conducted the survey in 2003 and 2013.

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