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‘My business will be finished’: Cash crunch hits farmers in Punjab

Juggernautjatt

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Nursery owner Nek Singh Khokh’s sales have dropped over the past month since buyers are low on cash. (Anil Dayal/Hindustan Times)

Nek Singh Khokh fears he might wilt, just the way the saplings in his sprawling nursery might.

Ever since Prime Minister Narendra Modi unveiled his demonetisation plan, scrapping big denomination currency to drain the economy of black money and counterfeits, Khokh has been struggling to pay labourers to tend to his saplings.

The owner of a nursery, some 25 km west of the Punjab town of Sirhind, Khokh sells seeds and saplings — from potatoes to onions, tomato and chilly — to farmers from Punjab, Haryana and Uttar Pradesh. His sales have, however, dropped over the past month since buyers are low on cash. Now, the saplings too are currently threatened for want of farm hands.

“Our business involves lot of cash rotation. The complications are mounting with every passing day. I have never seen such an uncertain scenario in the past 50 years since I took over my family business and started producing saplings,” says Khokh, 70.

His problem is he has money, but can’t access it. The day Modi made his announcement, Khokh had Rs2.8 lakh in high-value currency which he deposited in a bank. Since then, he has been struggling to withdraw cash for payment to the labourers.

He is in a labour intensive business and needs to pay anywhere between 20 and 60 workers daily. “These days, I am cash strapped, and there are other expenses to buy fertiliser, pesticides, diesel and equipment which I am unable to do,” Khokh laments.

Khokh’s inconveniences spell bigger trouble for farmers who buy seeds and saplings from him. Coming amid the sowing season for rabi crop, the scarcity of cash is estimated to have delayed sowing in at least one-third of Punjab’s 35 lakh hectares of crop land. Khokh says the sowing for vegetables scheduled to start in January could also be in jeopardy.

“The demonetisation has adversely impacted agricultural activities,” admits GS Kalkat, chairman of Punjab’s state farmers’ commission.

Khokh could not have agreed more. He is currently preparing saplings of chilly over five acres which should be sufficient to grow the spicy ingredient over 900 acres. He needs money for that purpose but the squeeze in liquidity has put him in a tight spot.

He recently sold 1,500 quintals of potato seeds, one-third of which was on credit since farmers did not have the cash to buy. “I am sure farmers who come to buy chilly seeds will seek credit again. My business will be finished,” Khokh says.

Khokh is at one end of the agricultural chain. Sukhwinder Singh of Bhattian in Ludhiana is at the other by being a farmer who usually buys seeds from him.

“A farmer who plans to grow potato over 10 acres needs a cash investment of around Rs3 lakh. Costs include saplings, festiliser and pesticides. Most of the purchases are in cash, something we hardly have these days,” points out Singh.

The problem facing Jagdev Singh of Muteon is pressing. He had some cash savings which he spent on his daughter’s wedding recently. “Now no one would give me saplings on credit. Banks are of little help. I do not know how to sow crop this season,” he says.

Farmers — both growing seeds and crops — are predicting a slump in vegetable produce this coming season. Growing crops will be a challenge. Selling them will be no less a problem. Traders have already lowered the buying price citing cash crunch and farmers will be forced to sell in distress. “Traders’ loss is also farmers’ loss,” Khokh explains.

This is Part 5 of our ongoing series on the effect of demonetisation on rural India. The earlier parts focussed on Sunderbans, Bastar, Jammu & Kashmir and Vidarbha.

http://www.hindustantimes.com/india...s-in-punjab/story-1uDg1xpm0CPqDgfqguSwiI.html
 
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Note ban backfiring in poll-bound Punjab: It seems advantage AAP, Congress
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As Prime Minister Narendra Modi’s move to demonetise Rs 1,000 and Rs 500 notes is apparently backfiring in the poll-bound Punjab a month after the surprise decision, it seems advantage Aam Aadmi Party (AAP) and the Congress.

Other than the inconvenience for the common man, which has only multiplied since the beginning of this month with no end to the serpentine queues outside banks and ATMs, the small merchants, arhtiyas (commission agents) and shopkeepers are beginning to feel the pinch of the slowdown caused by demonetisation.

State Congress chief Captain Amarinder Singh has already dared Union finance minister Arun Jaitley to contest Amritsar Lok Sabha byelections, calling it a “referendum” on demonetisation, which he termed as a “dictatorial move.”

Also, the core votebank of the BJP, the business community, is on the brink of losing patience, with the Prime Minister’s “anti-corruption revolution”. The move might cost the party the urban voter edge it had over the Shiromani Akali Dal (SAD), complementing the Akali hold in rural areas.

BJP MUM, SAD MURMURS COME OUT IN OPEN

The Punjab BJP is obviously quiet, but the underlying murmurs against the move within the Akalis came to the fore this weekend when state rural development minister Sikander Singh Maluka said the idea was good, but its implementation is faulty. “The decision to pull out Rs 500 and Rs 1,000 currency notes to check black money is a good move, but the poor implementation has left the residents harassed,” he said during a function in SAS Nagar on Saturday.

Though both the Congress and AAP have been criticising the government over the move, the AAP has the first mover’s advantage in cashing in on the anti-BJP sentiment.

The AAP already has a strong presence in Malwa mandis – the small town trading spots — and have held large successful rallies in and around these mandis for the past six months. AAP MP Bhagwant Mann first held a series of two dozen rallies in these mandis followed by another dozen rallies addressed by party supremo and Delhi chief ministern Arvind Kejriwal last month.

KEJRIWAL’S FOCUS ON NOTE BAN

Kejriwal’s Saturday rally in Balachaur dana mandi on Saturday evening too primarily focused on “notebandi” (note ban). Beginning with his repetitive gripe that the Akalis and Congress were hand in glove, he continued to lash out on Modi for a large part of his speech, alleging a Rs 8 lakh crore scam that had bailed out Modi’s rich friends and “killed” 84 common men and women till date. At his Adampur rally earlier in the day, he had touched on the issue.

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AAP MP Bhagwant Mann (centre) interacting with people in an ATM queue in Patiala on December 8. (HT File Photo)

“We have been against the PM’s decision from day one. The whole thing has led to the aam aadmi (common man) queuing up outside banks and people losing business and jobs. The situation has worsened after December 1 because salaries are blocked,” said Mann.

“We don’t want to politicise the issue. Kejriwal ji is addressing rallies on demonetisation across the country,” added AAP leader and Delhi MLA Jarnail Singh.

http://www.hindustantimes.com/punja...ap-congress/story-3A60b52rNA0n3UqafQty0H.html




@Prometheus @ranjeet @IndoCarib @The_Showstopper @indiatester @911 @ashok321 @cloud_9
 
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The note de-monitization should have been handled far better. They were under prepared and they should not have gone with the entire exercise if there was a threat of information leak.
That said, SAD-BJP was already at a disadvantage in Punjab. It is not going to gain any lovers due to this move.
 
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thats what happen when a illiterate person is made incharge of the nation...........

as Manmohan Singh said its a monumental mismanagement ..............well he also said History will be kinder to him unlike feku bhakts..............I have noticed drastic change in the perception of the people regarding him..........now they are saying he was good..............feku is bad.
 
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thats what happen when a illiterate person is made incharge of the nation...........

as Manmohan Singh said its a monumental mismanagement ..............well he also said History will be kinder to him unlike feku bhakts..............I have noticed drastic change in the perception of the people regarding him..........now they are saying he was good..............feku is bad.

Manmohan did not act the way he should have to address institutional corruption within his govt. I think that's partly because he could not stamp his authority over the Gandhis. The only time he was able to do that was during the nuclear deal. Anyway I am also starting to think that history would be kinder to MMS. If you look at his 10 years as a whole, India performed really well on most sectors (except the last 2-3 years). You are right that people are slowly realizing that now.

As for Modi, I would have disagreed with you a year or so ago but he is nearly 3 years into his term now and I am starting to question his competence as a PM. My personal opinion is that he is an extremely good politician, but not a good leader or policy maker. His core competence is PR and advertising, skills that he learned as an RSS pracharak but outside that his knowledge of statecraft is very limited despite being a CM for over a decade. He is also dictatorial within his own party. He ran a one man show in Gujarat and doing the same as PM. I take no pleasure in saying this but I am beginning to wonder if India made a mistake by electing him with such a huge majority which made him a defacto dictator for 5 years.
 
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Manmohan did not act the way he should have to address institutional corruption within his govt. I think that's partly because he could not stamp his authority over the Gandhis. The only time he was able to do that was during the nuclear deal. Anyway I am also starting to think that history would be kinder to MMS. If you look at his 10 years as a whole, India performed really well on most sectors (except the last 2-3 years). You are right that people are slowly realizing that now.

As for Modi, I would have disagreed with you a year or so ago but he is nearly 3 years into his term now and I am starting to question his competence as a PM. My personal opinion is that he is an extremely good politician, but not a good leader or policy maker. His core competence is PR and advertising, skills that he learned as an RSS pracharak but outside that his knowledge of statecraft is very limited despite being a CM for over a decade. He is also dictatorial within his own party. He ran a one man show in Gujarat and doing the same as PM. I take no pleasure in saying this but I am beginning to wonder if India made a mistake by electing him with such a huge majority which made him a defacto dictator for 5 years.
While agreeing with your views on gandhis major issue tackling the corruption was coalition politics and a very weak congress party internally. As far as Modis policy making skills just look at how he dealt with pakistan and how people are buying into his bs lol.
 
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While agreeing with your views on gandhis major issue tackling the corruption was coalition politics and a very weak congress party internally. As far as Modis policy making skills just look at how he dealt with pakistan and how people are buying into his bs lol.

Yes coalition was an issue but whatever the reasons might have been corruption did tarnish Manmohan's legacy. But at this point I'd take him over Modi any day.
 
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Yes coalition was an issue but whatever the reasons might have been corruption did tarnish Manmohan's legacy. But at this point I'd take him over Modi any day.

LOL.... that is the problem with wishful thinking.

History if anything will treat Manmohan singh as a traitor to India.

http://indiafacts.org/trial-of-manmohan-singh/

I have strong reasons to call for the trial of former Prime Minister Manmohan Singh and key members of his foreign policymaking team such as Shivshankar Menon, Salman Khurshid and M.K. Narayanan for treason against India’s national interests along with crimes against our future generations. In my hand is Bharat Karnad’s book, “Why India is Not a Great Power (Yet)”, and each paragraph I read resembles a distressed child telling us that these leaders mauled India’s national interests consistently, disturbingly and deliberately, and subordinated this nation of 1.3 billion souls to the interests of adversarial states like China and Pakistan. While Karnad’s 552-page book will need a long review, this review article focuses on how the foreign policy team led by Manmohan Singh crushed and crippled India’s global status and ambition in the world.

If you are a youth under 25 constituting about 55 percent of Indians, this nation belongs to you and your children more than it belongs to my elders or to my generation nearing 50. So, it’s essential for you to know how these Indian leaders engaged in crimes against India while being in power. Manmohan Singh was the prime minister for ten years from 2004. While our ancients taught us that India should be the Vishwa Guru (world leader), Manmohan Singh, as the prime minister, wrote in 2007 that India “does not desire to be a global superpower.” Shivshankar Menon, who served as the national security adviser to Manmohan Singh for four years till 2014, dismissed “status”, “prestige” or “any other goal” that could appear as “popular or attractive” for India.


In this book, Karnad slays the “delusional strain” among India’s foreign policy thinkers right from Nehruvian days and reveals how a host of our leaders from Prime Minister Jawaharlal Nehru to Manmohan Singh was practically working for China and other enemies of India. When India was offered a membership of the UN Security Council by the US and Russia separately, Nehru wrote: “Informally, suggestions have been made by the United States that China should be taken into the United Nations, but not in the Security Council and that India should take her place in the Security Council. We cannot, of course, accept this as it means falling out with China and it would be very unfair for a great country like China not to be in the Security Council.”

The book reminds us how India is being told even now to be a “responsible power” and a “net security provider” – limited to shouldering the agenda of foreign powers. Its revelations are also consistent with the information in public domain, based on the statements of those involved in the underground of Track-II diplomacy with Pakistan that Manmohan Singh was close to handing over Azad Kashmir – the Pakistani-occupied Kashmir – formally to Pakistan as part of a U.S.-brokered pact, notwithstanding his statements to the contrary. This is a betrayal of India, especially since there is legal clarity that people born in Azad Kashmir and Gilgit-Baltistan, both being part of Jammu & Kashmir, are Indian citizens. Due to the criminal silence of Indian leaders, we don’t even see them as ours.

From the mid-1990s, the United States initiated a policy to build relationships with India and other Asian nations to meet the challenge of the rising China. It is being seen as the containment of China based on the principle of balance of power. However, speaking in Beijing, the capital of India’s adversary, Manmohan Singh attacked “the old theories of alliances and containment” as “no longer relevant.” This statement was consistent, writes Karnad, with Shivshankar Menon’s “contemptuous dismissal” of balance of power as “very Nineteenth Century” – the “underlying conceit” being that “India can do without allies and partners.”

In 2011, Menon lambasted nationalist Indians for “much loose talk about India as a potential superpower.” There is a line of thinking that as long as some Indians travel by bullock carts and bicycles, India should not embark on a mission to Mars, or build cars and motorbikes. Menon defined India’s posture as that of “strategic restraint” and saw it as a distraction, stating: “Eliminating poverty and realizing India’s potential will be the focus of our efforts – not external entanglements, arms races or other such balance of power distractions.” What if India achieved a great power status, the author asks, Memon asserted: “that would be fine.”

This line of argument was also articulated by Salman Khurshid, who served as the external affairs minister from 2012 onwards. Addressing an Oxford university audience, Khurshid spoke highly of India’s “softly-softly approach” in its foreign policy. “We do not assert ourselves,” Khurshid said, “by intruding, dictating, or imposing.” When China warned India not to collaborate with Vietnam in offshore oil exploration, external affairs minister SM Krishna responded, notes Karnad, “with fighting words to the effect that the South China Sea is not China’s sea” but Menon qualified it by saying India would consider such a role in “the Indian Ocean and our neighborhood” only and if “it contributes to India’s own transformation.” It appears Menon’s sole purpose to serve Chinese interests first, the Indian interests second.

When contentious points emerged in the India-US relations during his tenure, Manmohan Singh diverted India’s foreign policy objectives to non-issues and domestic matters. This diversion is seen in five points outlined by Manmohan Singh at a meeting of Indian ambassadors in 2013: i) foreign relations will be shaped by India’s “development priorities”; ii) the Indian foreign policy should ensure “wellbeing” of India which should be the “single most important objective”; iii) India should work for “beneficial relations with all major powers”; iv) India must “create a global and security environment beneficial to all nations”; v) “our values” such as “democracy and secularism” should be the basis of ties with India’s neighbouring states.

In the anarchical society of states, where ambassadors are willing to break each other’s nose to protect their nation’s interests, these five points were worthless words from a prime minister unable to defend India’s interests. This cowardice was termed as “the Singh Doctrine” by Sanjaya Baru, the prime minister’s media adviser. In February 2006, when Manmohan Singh was also the external affairs minister, his ministry prevented the Indian Navy from attacking pirates who seized a ship flying the Indian flag; and his government chose to pay ransom to free the Indian citizens. As detailed in the book, Indian Navy Chief Admiral Arun Prakash was bitter about this surrender of the Indian state before a handful of pirates and cowardice of Manmohan Singh.

Karnad’s book has numerous incidents on how army and navy officers were humiliated by the team led by Manmohan Singh. Shivshankar Menon spoke against Admiral D.K. Joshi, who was asked a question in Beijing how Indian Navy would respond if China seized Indian warships deployed in South China Sea to protect Indian energy assets jointly owned with Vietnam. Admiral Joshi gave a standard response that “rules of engagement” will apply whenever India’s “right of self-defense is impeded” – but Menon issued a statement saying Joshi was “misled” and the Ministry of External Affairs issued a statement to the effect, observes Karnad, that “New Delhi is more mindful of Chinese sensibilities [than the Indian military is].” The crimes by Manmohan Singh’s team do not cease here. The author narrates another incident: In its intent, the 2010 Operational Directive issued by defence ministry to the military services designated China as the main threat but it was quickly “diluted” by Salman Khurshid who described as China as “major concern” and Pakistan as “part of the Chinese picture” – as if Khurshid was watching a Bollywood movie.

During the tenure of Manmohan Singh, an attempt was also made to revive Nehru’s now-irrelevant and inconsequential foreign policy through Nonalignment 2.0, a quasi-official document supposed to serve as a vision document authored by Congress party’s parasites. At a function to release the document in 2012, M. K. Narayanan, the national security adviser to Manmohan Singh from 2006 to 2010, stated that India must avoid “too activist a [foreign] policy” and that hard power – i.e. military power – is not “necessary” for India because becoming a great power is “an unaffordable luxury.” In line with this thinking, India’s junior external affairs minister Shashi Tharoor conceived “Pax Indica” – a treatise on soft power meant to serve the interests of foreign powers and sell to them “India’s sense of responsibility to the world.”


In this excellent book, Karnad also investigates the responses of the counterfeit liberal writers like Amartya Sen, Ramachandra Guha, Minister Jairam Ramesh and others. Sen lambasted India for the 1998 nuclear tests and dismissed them as “the thrill of power.” Guha, who sells himself as a historian, is quoted as saying: “India will not become a superpower”; and since it is poor, “India should not even attempt to become a superpower.” Jairam Ramesh is quoted as saying by Karnad that India’s great power aspiration is “dangerous.” The author reminds such writers and thinkers that if poor economic conditions were an acceptable reason, the sixteenth-century England would not have funded the enlargement of the Royal Navy on the path to becoming a great power. While subject-matter experts will read Karnad’s book, it must also be read by India’s youths enrolled in Indian institutes of technology and management. At this point in time, India’s defence will benefit the most from non-experts and new ideas.


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About the Author - Former BBC journalist Tufail Ahmad is the executive director of the Open Source Institute, New Delhi. Ahmad is the author of “Jihadist Threat to India – The Case for Islamic Reformation by an Indian Muslim.
 
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