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The Official Journal of the Pan-Pacific Association of Input-Output Studies (PAPAIOS)

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

From: An agribusiness perspective of demonetization in central region of the state of Gujarat in India

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