Economy

Farmers Can Use Demonetised Rs 500 Notes to Buy Seeds: Finance Ministry

Representational image. Credit: Amit Dave/Reuters/Files

Representational image. Credit: Amit Dave/Reuters/Files

The finance ministry today announced new measures to support farmers in the aftermath of demonetisation. The ministry declared farmers would be allowed to purchase seeds for the Rabi crop (the winter crop) with old Rs 500 notes. The move comes days after the ministry had declined the agriculture ministry’s request to allow farmers to buy seeds with old Rs 500 and Rs 1000 notes. According to the Indian Express, the finance ministry had argued at that time “that this may become a conduit to offload black money”.

However, the ministry has now said that the old Rs 500 notes can be used by farmers at PSUs and central and state government outlets on providing identification. The notes can also be used in national or state seeds corporations.

In another tweet, the government reiterated its commitment to supporting farmer, especially now, for the winter crop. Last week, the government had announced that farmers can withdraw upto Rs 25,000 a week if they had crop loans.