Cash crunch hits Kole farmers in Thrissur

THRISSUR: The Kole farmers in Thrissur are finding it tough to get liquid cash and notes of lower denominations including that of Rs 100 for carrying out farming activities which have already begun this season. Almost all of them are dependent on farmer’s co-operative societies. There is a possibility of transferring the money from their local cooperatives and banks to the District Co-operative Bank through Real-Time Gross Settlement (RTGS) and from there to other banks through online transfer.

But for paying daily wages to farm workers and for tiller and tractor operators, they have difficulties, Vincent Puthoor of Elthuruth Kole Farmer’s Cooperative Bank told this paper. “We are facing a tough time in disbursing Rs  20,000 meant for each acre of paddy cultivation to our farmers. If not for the demonetization, we would have distributed as many as Rs  15 lakh meant for the farmers associated with the bank in a time-bound manner. “Even if the money reaches their accounts online, farmers are now in need of liquid cash,” Mr Puthoor said.

Another farmer, Dinesh K. of Kattoor Kole Padavu near Irinjalakuda, said some farmers due to the impending water shortage due to weak monsoon were lending out their fields, and some are managing it by paying Rs  2,000 banknotes and at times by demanding tractor/tiller service on credit due to currency crunch. RTGS may not be a simple option for farmers as they need to spend time at banks for withdrawals of Rs 24,000 a week from their accounts, he added. A top official at Ayyanthole branch of District Co-operative Bank told DC that through RTGS, they had been transferring funds, even more than Rs 5 lakhs, to their customers. But due to the note crunch, farmers find it difficult to go about their work.