He also said the ongoing rabi sowing has not been impacted much due to demonetisation. A central team sent to rural areas has found no significant impact on sowing so far.
Sowing of wheat, the main rabi (winter) crop, commenced from October and will continue till the month-end. Harvesting of the crop will start from April onwards.
As per the latest data, wheat has been sown and transplanted in 173.93 lakh hectares till last week of the 2016 rabi season, much higher than 152.56 lakh hectares in the year-ago period.
Stating that wheat is temperature-sensitive crop, he said it is difficult to say at this point of time if there would be warm winter throughout the season. Higher temperature would impact when the pod is formed. "We are keeping a close watch," he said.
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Wheat sowing is not yet complete, it is planted in 50 per cent of the area so far. "Right now, there is no need to be alarmed," he added.
He said India's agricultural economy has been a credit economy irrespective of whether one transacts in cash or plastic. "So, the very nature of relationship in rural areas between people and communities is such that they are quite resilient," he explained.
"We have sent our teams to distant rural places to see if they are really impacted. We found out that they have not been impacted much," he noted.
"As far as seed is concerned, we have permitted use of old notes to buy seeds. One needs to understand that 70 per cent of farmers rely on farm saved seeds, it has not really impacted."
On farmers facing difficulty in selling their produce in mandis, he said, "In first few days, there was a little confusion, but it got corrected. There was a fall in sale in some mandis initially, now the mandi operations have bounced back. Many accounts have been opened and people are preferring to get money in their account."