Karnataka: Cash ban hits onion farmers hard, distress sale on

HUBBALLI: For farmers like Yogesh Uppin, 39, of Byahatti in Dharwad taluk, who are already short of cash because of a crash in prices of onions, the impact of demonetization of high value currency notes has left them with next to nothing at a time when they have to pay wages to farm labourers for harvesting the crop.

For instance, Yogesh Uppin sold 100 quintals of onions at a procurement centre set up by the government at a support price of Rs 625 a quintal, but the sale did not fetch him even half the cost of cultivation owing to a glut and resultant crash in prices of onion. And, while he awaits a credit from the government for onion at the procurement centre, he has to endure the ire of farm labourers who want their wages paid to continue with harvesting the crop.

More than one thousand farmers in Dharwad district have sold around 44,600 quintals of onions at the procurement centre set up by the government since November 4. The government has extended the duration of procurement till December 7 in view of large number of farmers in distress turning up at the procurement centre at Amargol APMC yard here. Some have resorted to distress selling to middlemen and commission agents at throw away prices because the wait seems unending. “I have sold onions for Rs 400 per quintal to middlemen instead of waiting in the queue at the government procurement centre. I cannot afford to pay more transportation cost for parking the tractor for several days at centre till officials purchase our onions. And farm labourers may not work in our farm during the next season if we fail to settle their dues because of lack of liquidity of cash,” rued farmer Rudrayya Hiremath of Kalakeri village in Nargund taluk.

Mr Mallikarjun Mallammanavar, manager, Karnataka Rajya Sahakara Marata Mahamandala, who is supervising the purchase of onions for support price, however, said cash would be credited to the back accounts of farmers within next one week.

Meanwhile, the district administration has suspended purchase of onion on Friday due to absence of adequate space to store it in view of the glut. This has caused inconvenience to farmers who are waiting to sell onion in APMC. However, the officials claimed that they would resume the purchase from Saturday after transportation of the entire stock of onions to markets in Mysuru and Bengaluru.