Politics of Demonetization: Its Effect on the Village Economy in India.

Tuesday, 17 July 2018: 18:18
Oral Presentation
Maitreyee BARDHAN ROY, Diamond Harbour Women University, India, Beautiful Mind, India, Centre For Strategic Studies, India
The Government of India` s call for demonetization on 8th August 2016, banning Rs500/-and Rs1000/- notes was promoted as a positive step against black marketers and black money hoarders. The long term effect of such decision became disastrous to the agri-business chain, run on soft cash. Affected group included the producers, small and big Agri- business houses and prospective consumers too. Producer lost sustainability, market lacked buying capacity and the pressure on the customers will be the long term outcome of the chain .The producer failed to buy inputs for better production. The Middleman incapacitated to buy the produced goods for instant sale and for storage for off season .The consumers expected to be the future victim of scarcity .The overall effect of demonetization thus came on all involved in agri-products. The overall effect of demonetization thus created a negative impact on the rural economy for the present as well as for the future years. The present article while offering an insight on the effect of demonetization on rural economy made an effort to extend first hand information on the position of rural farmers and also to the business houses as an effect of demonetization .The paper while emphasizing the adverse effect of demonetization in West Bengal would prefer to extend first hand information on the negative effect of thoughtless policies . The main focus of the study is to expose the effect of demonetization on agri –business chain in the country and more specifically in West Bengal . The findings of the present study will be used to evaluate the socio-economic impact of policy initiative like demonetization on the economy of the country.