Demonetisation: Farmers allowed to buy seeds with old notes

Gaurav ChoudhuryMoneycontrolThe government on Monday allowed farmers to buy seeds with the old Rs 500 banknotes from outlets administered by the government and public sector units.The move comes amid reports that the move to demonetise Rs 500 and Rs 1000 notes had affected sowing plans for the rabi (winter) season.The economy-wide draining out of the old notes have left many farmers with no cash to buy seeds in the middle of the sowing season.On Monday, the government said farmers can buy seeds from outlets run by “central or state governments, public sector undertakings, national or state seeds corporations, central or state agricultural universities and the Indian Council of Agricultural Research (ICAR), on production of proof of identity”.This is in addition to the decision taken earlier for making cash available with the farmers by permitting them to draw up to Rs 25,000 per week from their bank accounts.“The Government is committed to ensure that the farmers are suitably facilitated during the Rabi season,” the finance ministry said in a statement.