Even though the demonetisation and GST effects may have faded away with the time, it seems that the Karnataka’s farm sector is still under bad conditions due to these two factors that caused a massive eruption in the Indian economy recently. According to a study of price forecast by the Karnataka Agriculture Prices Commission (KAPC), which have elaborated the situation also mentioned that the prices of numerous agricultural products may further decrease in coming future.
A report namely ‘Perspective Report- December 2017’ which is earlier submitted by the KAPC stated that a large number of crops will be going below the levels of Minimum Support Price (MSP) as mentioned by the centre. The recommendations from the KAPC also came up with detailed research and analysis of demonetisation and GST impact before starting procurement of crops in order to provide a bailout to the farmers.
The KAPC Chairman T.N. Prakash Kammaradi mentioned some unusual trend across the market and stated that many of the crops which are not available in the market in some of the seasons are coming in the market i.e. in the nation season. Also, it is to be seen that these crops are coming in spite of lowered cultivation area and actual production stats.
It was treated as a bad sign to the farmers as the prices of crops were crashed and made a negative impact on the prices of pulses which were dropped at 30 percent on average. It is acknowledged that the transactions of agriculture products are also in fluctuations as there are arrivals of crops in the time of lower production. The report stated that “There appears to be a stock of agricultural produce which has not been sold after demonetisation and GST.”
Read Also: Goods and Services Tax Impact on Agriculture Sector in India
It is speculated that the products price in the agriculture arena are battling to get a clear conscience upon the agriculture commodities and also there are lots of provisions and clauses which have to be adopted by the traders.
