Radadia, an MP from Porbandar, said on Monday that the curb on old Rs 500 and Rs 1,000 notes will adversely hit Gujarat’s agriculture sector if corrective measures were not taken.
A report carried by The Hindu said that the demonetisation impact could force all agriculture marketing produce committees (APMCs) to remain shut for at least two months.
Radadia along with other Gujarat BJP leaders, according to the report, are associated with the state’s powerful cooperative sector. They are likely to meet the BJP president Amit Shah in Bharuch, where he is expected to attend a social event later today (Tuesday).
Radadia, who is also chairman of Rajkot District Central Cooperative Bank, told the paper, “First of all, we have to understand that the agricultural economy cycle is cash-based — from buying seeds to pesticides and fertilizers and labour and selling produce is effected on cash-based transactions.”
Radadia said that the RBI’s decision to bar all district central cooperative banks from exchanging old notes has further compounded farmers’ woes in the state. Millions of farmers are linked to these cooperative banks.
“In my bank, there are one million farmers holding accounts but they cannot do any transaction in the bank because of the RBI’s directive. This has to go, otherwise millions of farmers will have nowhere to go for transacting their banking activities,” Radadia said.