Demonetization effect on agriculture sector-problems and prospects

Abstract

Agriculture in Indian, economy shares around 50 per cent of the workforce. Farmers, who are considered as the backbone of our national economy, were sternly affected by the currency note demonetization of Indian economy. Most of the farmers who are availing loans from cooperative banks have no cash reserves to supply them. With this effect farmers were not able to buy seeds, fertilizers and other required things for farming on time. It took almost 8 weeks to resolve this issue. Till that time, farmers found it very difficult, they normally deal their transactions in cash. The cash transactions in our economy are extremely high when compared with the total number of electronic transactions carried on a daily basis. Most of the earlier studies emphasizes more about cashless payments and its advantages, Debit and Credit Cards using in retail sector, e-payments and their problems faced by the public in using plastic cards for payments etc., all these could not solve the shortage of currency in the country at a time. Eventhough there is no much difference in value and volume of currency i.e., the calculated values for the hypotheses formulated are 0.148 and 0.075 respectively, but the people were much more suffered due to the demonetization of currency by the Government due to that agriculture sector severely affected. The previous studies could not much focused on agriculture sector. Hence, this kind of specific study is highly needed in the context of demonetization. By using multi-stage random sampling technique 330 sample respondents were selected.