Demonetisation: In orange country, cash drought turns a sweet harvest sour

Demonetisation: In orange country, cash drought turns a sweet harvest sour

PUNE:Orange growers in Vidarbha region consider the central government’s demonetisation move a ‘man-made disaster’ with fruit prices tumbling 50% in a week, prompting many farmers to throw them on the streets of Amaravati city in eastern Maharashtra.

Having sold their produce at throwaway prices of Rs 5 per kg last year and Rs 12 per kg in the year before that, Vidarbha orange growers were getting record high prices that reached Rs 6.50 a piece on November 6 and was going upwards. But the next day Prime Minister Narendra Modi announced scrapping of Rs 500 and Rs 1,000 currency notes, and everything changed.

“Today, traders are offering us only Rs 2-3 per piece and that too in the old demonetised notes,” said Devendra Gorde, a farmer from Hiwarkhed village in Amaravati. Growers have now demanded that the government should either buy the fruits or help farmers export them through the farmer producer companies.

As per the decades-old system of orange marketing in this region, a village agent brings state buyers, and the deal is for an entire orchard for a fixed amount. However, if the final value of fruits is less than the agreed upon price, then the farmer gets less. These transactions are essentially done in cash partly because farmers cannot put their trust on cheques issued by outstation traders.

“The system is convenient as a farmer does not have to pay transport cost nor arrange for the harvesting labour,” said Amol Totey, working president of All India Orange Growers Association.

The minimum farm size in Vidarbha is 5 acres and with the rates that were prevailing before demonetisation, farmers could have received Rs 15 lakh to Rs 20 lakh for an orchard of five acres. Of all the orange production from Maharashtra, about 35% is exported to Bangladesh, while southern states and Delhi are the other main destinations for the citrus fruit.

Farmers in Vidarbha are also worried that if they cannot empty the orchards by December 15, then there will be adverse impact on production next year as pruning and other operations will not happen on time.

 

Source: ECONOMIC TIMES