Karnataka: Dead' after drought, demonetisation!

Hubballi: The ban on the old Rs 500 and Rs 1000 notes anounced by the Central government last week, has severely affected business in the major cattle markets of Gadag, Haveri, Dharwad and other parts of North Karnataka.

Farmers, who are prepared to sell their cattle for  throwaway prices due to the drought, are finding it hard to get buyers to finalise the deal as most don't have the cash needed owing to the demonetisation.

 "We have been facing a drought for the last two years and are forced to sell our cattle owing to lack of fodder and drinking water. But the ban on the high denomination notes is making buyers reluctant to even take them at the low prices we are prepared to accept," said farmer Mallappa Hangaraki,  47,  of Mugad village, who  waited all through the day at the Dharwad cattle market on Tuesday for a good price for his two bulls, but  was offered only upto Rs 40,000 for them.

Finally,  left with no choice, he sold them for a throwaway price, happy to get what little cash he could get to deal with the drought which has affected his village.

He is not alone as the lack of adequate fodder and the ban on high denomination currencies are forcing farmers to sell their cattle for very low prices in the region. Aware of this, owners of cow slaughter house are also flocking to the cattle market to cash in on the drastic fall in the price of the livestock.

Going by Mr Maruthi Chahwan, a middleman and commission agent at the Dharwad cattle market, there has been a 75 per cent fall in the buying and selling of  cattle due to the cash crisis.