Jaitley Denies Request to Let Farmers Use Old Notes to Buy Seeds

The surge of deposits in Jan Dhan accounts were cited as the reason for declining the request.

Finance Minister Arun Jaitley. (Photo: PTI)

While the government allowed farmers to draw up to Rs 25,000 per week, Finance Minister Arun Jaitley, on the other hand, turned down the Agriculture Minister’s request to permit farmers to purchase seeds using old Rs 500 and Rs 1,000 notes.

The Department of Economics Affairs cited the surge of deposits in Jan Dhan accounts as the reason for declining the Agriculture Minister’s request, reported The Indian Express.

The Department said that this may become a way to offload black money and added that the farmers can exchange or withdraw cash from the 16 crore existing Jan Dhan accounts.

Also Read: Exchange Limit Slashed to Rs 2,000 and 4 Other Changes to Note Ban

Radha Mohan Singh wrote to the Finance Minister on 15 November seeking permission for all government-run seed agencies to take old currency notes to sell seeds for Rabi crop until 24 November.

Singh argued that this exception would allow the farmers to purchase certified quality seeds rather than fall back upon low-yielding seeds.

Singh said that the use of low-yielding seeds will lower the national output as well as put to waste the high-yielding seeds available at the National Seeds Corporation (NSC).

Also Read: Currency Ban Blues: What’s Behind Jaitley’s Deafening Silence?

Singh had also requested that the farmers be allowed to buy seeds worth Rs 10,000 per day using old currency notes so that the target of 638.09 lakh hectares of sown area can be achieved.

As a security measure, he said that the agencies can collect the photocopies of identity cards of the farmers and refund of money and return of seeds to not be allowed when purchased with old currency notes.

The Rabi season is just commencing and the best time to sow wheat crops is the beginning of November until 10 December.

(Source: The Indian Express)