Cash crunch following demonetisation has not affected sowing of major crops during rabi season in Madhya Pradesh. On the contrary, cultivation area has increased this season as compared to last year.
According to the latest available data, total rabi crop sowing has exceeded 81.58 lakh hectare in the state as compared to 61.59 lakh hectares at this time last year, an increase of 20.68 lakh hectare.
Wheat sowing in the state has crossed 37.30 lakh hectare as compared to 24 lakh hectare last year, an increase of 13.45 lakh hectares.
“Sowing is progressing smoothly and there is no impact of withdrawal of 1,000 and 500 denomination banknotes. We are expecting the rabi cultivation area to exceed the target,” principal secretary (agriculture) Rajesh Rajora said.
The central government’s move to withdraw Rs 500 and Rs 1000 currencies on November 8 in the middle of harvest and sowing season had led to apprehension that farmers would find it difficult to buy seeds and fertilizers.
While farmers did face problems while selling their produce at mandis, the central government later allowed them to purchase seeds using recalled 500 rupee bill.
“There is a lot of credit system involved and the government’s move to allow farmers to use old Rs 500 also helped. Farmers are also slowly coming to accept cheques at the mandis although they always prefer cash,” said Krishnapal Singh, a farmer in Khargone.
Agriculture department officials said if weather remains conducive then Madhya Pradesh was again looking at another bumper wheat crop. The state is now third largest wheat producer in India. Apart from wheat, the state is also a leading producer of pulses.