Table 3 Effect of demonetization on input supply sub-system.

a. Seed

Purchased from

Private dealers and cooperatives. Owned seeds were also used

 Mode of purchase

On credit and on cash. It was charged high on credit purchase

 Delay in purchase

Due to non-availability of cash, the purchase delayed by 10–15 days

 Area sown

Impact on area sown initially. Sowing picked up later

 Percentage farmers affected

Around 72% farmers in Anand reported delayed sowing and 78% reported the same in Panchmahal (Farmers in Panchmahal generally move to urban area for earning in Rabi season)

b. Fertilizers

Purchased from

Fertilizer depot and Cooperatives

 Mode of purchase

Cash (old currency notes), debit cards

 Delay in purchase

3–4 days via cash (when govt directed to accept old notes)

 Promotional offer

GNFC offered 10% discount on the purchase of fertilizers through debit card

 Impact

Cashless transactions for the purchase of fertilizers increased by 34%

c. Plant protection

Purchased from

Private dealers

 Mode of purchase

On credit and on cash

 Delay in purchase

Due to non-availability of cash, the purchase delayed by 10–15 days, in line with sowing

d. Credit

Loan taken

18% sample farmers had taken crop loan during kharif 2016-17

 No. of Bank accounts opened

15% sample farmers in Anand, and 34% farmers in Panchmahal applied for bank account post-demonetization

All those who had dairy animals including landless laborers had to mandatorily register for bank accounts. 75% of landless laborers also applied for bank accounts post-demonetization

e. Labor

Availability and Demand

Ample availability, less demand

 Mode of payments

Cash. Due to cash crunch, work scarcity. No one was willing to lend them. All borrowing from locals was based on personal relations

 Delayed payments

1 week to 15 days. Payment was done in parts

 Substituted by

Family