DEMONETISATION 0F CURRENCY - ISSUES & CONCERNS -FARMERS

DEMONETISATION 0F CURRENCY - ISSUES & CONCERNS -FARMERS 

Though the sale realization of agriculture lands do not attract capital gains, farmers accept cash out of ignorance rather than the mollified intention of tax evasion. 

Also when farmers look for buying lands else where, part cash is essential to close the deal, making the cash accruals essential to survive in the system. 

This sudden decision of demonetisation making the farmers particularly in vibrant areas left with cash and now it is very difficult for them to bring it into banking in present system. 

Certain relaxations may be allowed to these sections till the gap between card and actual rates of lands is reduced. 

The Agri operations transactions happen predominantly in cash and Rs 500 note is the base note. Also the Agri produce is traded in cash. The system of exchange notes upto a limit in rural areas shall be without verification system.

There is a danger of currency movement to rural areas and exchange through that route. There are rumours that the news was leaked to few selected individuals and already found its way. 

It is the responsibility of govt to capture unusual cash withdrawals, deposits , movement etc in last two months and publish white paper to clear the doubts .

BGR