Wheat production may drop as farmers in UP delay sowing

Moneycontrol BureauFarmers in Uttar Pradesh, a poll-bound state, is struggling to meet their wheat output targets owing to a severe cash crunch, reports Business Line. Sowing of wheat, a key Rabi crop, is being delayed as result. Rural banks, a prime source of cash for farmers to buy seeds and fertilisers, are not replenishing their coffers adequately.

A farmer in Moradabad speaking to the newspaper said the bank in his village gets cash only once in 10-15 days.

The ripple effect from the demonetisation has managed to put the squeeze on supply of currency notes. With not enough replacement money being pumped into the system, banks in rural areas are strapped for cash.

Sugar mills which pay sugarcane farmers in cash aren’t able to meet their dues. And farmers aren’t able to sow winter crops as they  haven't received their pending dues in what is turning out to be a vicious cycle.

The Prathma Bank in Khanpur Muzaffarpur, which has 6,000 account holders, has not seen any cash in the past week, reports Business Line.

The absence of enough fertilisers is also hampering sowing of wheat.

Left with no choice, farmers are resorting to barter and goodwill.