Demonetisation: Govt allows farmers to buy seeds with old Rs 500 notes

Zee Media Bureau

New Delhi: In order to further support farmers for the current rabi crop, the government has decided to allow farmers to purchase seeds with the old high denomination bank notes of Rs 500, the Finance Ministry said in a statement on Monday.

The seeds, using old notes, can be bought from the outlets of central or state governments, state-run enterprises and national or state seeds companies and agricultural universities upon furnishing a valid proof of identity.

This is in addition to the decision taken earlier for making cash available with the farmers by permitting them to draw up to Rs 25,000 per week from their KYC compliant accounts subject to the normal loan limits and conditions apart from the other facilities announced on November 17.

The government is committed to ensure that the farmers are suitably facilitated during the rabi season.

Prime Minister Narendra Modi's shock move to cancel 500 and 1,000 rupee bills as legal tender has left millions of farmers with little cash to buy seeds and fertilisers for winter crops, threatening production of key commodities and hurting rural communities only just recovering after two years of drought.