HAVERI: The Byadagi chilli market, one of the biggest in Asia, adopted digital payment to farmers in 2010. Now, 99% of the transactions here are digital and, only 1% of people are doing transactions in hard currency.
Digital payments are helpful to farmers as well as buyers and commission agents. The Agriculture Produce Market Committee (APMC) has noted that it is very difficult to monitor currency transactions as the market has transactions to the tune of Rs 2,000 crore per year.
After demonetisation in November 2016, the Prime Minister had urged the nation to encourage digital payments. But, the Byadagi APMC had adopted digital Payments much earlier with the help of traders, commission agents and farmers.
"It is very difficult to transact only in currency, as then the market would need Rs 20-30 crore currency notes each day. The market has a turnover of over Rs 2,000 core per year and so it is difficult to arrange currency notes to bankers too. So, all traders, commission agents and farmers have adopted digital payments in the chilli market," claimed Byadagi APMC secretary Adappa.
Traders' association secretary Raju Morigeri said, "We have been sending money directly to the farmer's accounts through RTGS after their produce is sold in the market. Its helping farmers also because some of them come from different states and it's difficult for them to carry cash. It is also difficult to arrange currency during every market day if we transact in hard currency. Only 15 of our transactions are with cash and they are for transportation andlabour costs."
"I have been visiting the Byadagi Chilli Market for last eight years, and I never accept cash because it is very difficult to carry it while travelling. The commission agents send the money directly to my account," said Sriram Pattadamalli, a farmer from Alur village in Anantapur district of Andhra Pradesh.
