Demonetisation has hit trade at APMCs, Karnataka govt

Karnataka government today informed the state assembly that demonetisation of Rs 500 and 1000 notes has impacted the trade at Agricultural Produce Market Committees (APMCs) across the state with both arrivals and trade volumes of food grains declining.

Intervening during the discussion on drought, Agriculture Minister Krishna Byre Gowda said demonetisation has "adversely" impacted normal transactions.

Farmers were skeptical of bringing their produce for sale to the markets, while traders and commission agents were not fully participating in the market activities, he said.

Citing available market arrival and trade data for the weeks preceding and after the announcement of demonetisation, he said during November 1-8 period, a total of 74,619 lots were traded, whereas during the week after the announcement (November 9-16) 48,892 lots were traded, which showed decline of 34 per cent in market arrivals.
 

"Traded volumes have come down by 38 per cent from 137 lakh quintals during the week preceding announcement to 85.1 lakh quintals in the week after the announcement, he said.

According to Gowda, the figures available was with regard to food grains but the trade of perishables like fruits and vegetable had also been impacted adversely.

Stating that information regarding the demonetisation impact on value of the total trade was being collected, he said it "obviously" had impacted the price.

Gowda's intervention came when JDS leader H D Kumaraswamy said farmers were facing difficulties in trading their produce and repaying their loans to cooperative banks because of demonetisation.

JD(S) sought to move an adjournment motion demanding a discussion on the inconvenience caused to farmers like repaying crop loan by the due date, as district central cooperative banks (DCC) have been barred from accepting and exchanging the demonetised notes.

Chief Minister Siddaramaih has already written to Union Finance Minister Arun Jaitley in this regard.