India. Demonetisation may lead to rise in wheat price


The demonetisation, which has also effected the farming practices, may result in a hike in wheat prices in future.

Farmers are unable to purchase seeds, necessary fertilizers and other important things in absence of lower denomination currency notes, delaying the sowing of wheat crop. And the delay may bring a rise in wheat rates ultimately increasing the prices of various food items.

In north India the best time to sow wheat crop is from November 1 to 10 and if it is delayed till December 10 then both the quality and yield get affected. "This is the perfect time to sow seeds for wheat crop to yield the best quality but as we have no money in lower denomination currency notes it would be delayed. The delay will result in bad quality and low yield," said farmer Dhram Singh, a resident of Gagan Kheda village, Sarsaul, Kanpur.

"Though one can sow wheat crop till December 15 but the prime time is between November 1 and November 20. The productivity in such land where seeds will be sown late will degrade. On every one acre of land there would be a loss of five to seven quintals of the crop,' he added.

Another elderly farmer of the same village, Surendra Singh Yadav said, "We dont have new currency notes to buy seeds and fertilizers to sow wheat crop. We are getting only old currency notes from wholesalers by selling seasonal vegetables With the limit of only Rs 4,000 to exchange at a time and now indelible ink, how will we exchange big amount which is required when ATMs too are dispensing only Rs. 2000 that too after struggling for entire day."

Agriculture experts have also claimed that demonetization will certainly affect the agriculture cycle which is totally depended on perfect timing of sowing crops.

Dr Karam Hussian from Agronomy department of Chandra Shekhar Azad Univeristy of agriculture and technology said at present there is a decline in the purchase of seeds from the seed store of university. From a sale of three lakh rupees per day of seeds, it has come down to around one lakh. Also If wheat is sown in December month, there would be a decline of 10 to 12 quintal of crop per acres, he added.

He also advised farmers to increase the quantity of seeds for sowing and do proper irrigation if they sow seeds in December. "But this finally will hike the price of the wheat," he added further.


Readers choice: TOP-5 articles of the month by UkrAgroConsult