INCONSISTENT RAINS HOLD BACK RURAL DEMAND

Rural India reports uneven recovery as monsoon hits consumption in western and southern states.

- AJITA SHASHIDHAR

DHANESHWAR SHARMA, a 60-year-old farmer from Bihta town in Bihar, shows off two large silver coins he bought on Diwali this year. As he digs into piping hot litti chokha at a highway dhaba, he breaks into local ‘magadhi’ while discussing the positive mood in his village. Despite moderate monsoon this year, the yield on his 11-acre farm (where he grows rice, chana dal, mustard and wheat) has been good. Other farmers also have had a good year. However, he has his share of complaints. “It is not so much rains that have caused a problem. It is government mandis. They claim to pay in 48 hours but it’s been 48 days now. More than ₹2 lakh cash is stuck,” he says. He had to sell rice in open market for ₹1,800 per quintal, ₹500 less than the ₹2,300 MSP (minimum support price).

But Sharma’s situation is far from bleak. He recently bought a tractor for ₹6.5 lakh. He also runs a car rental business and plans to buy his third Mahindra Bolero. It is wedding season and both his Boleros are booked for next one month. Sharma’s friend, Bramhans Singh, the owner of the dhaba, also runs a kirana store in adjoining Gorna village. Business at both the dhaba and the store is roaring. “People have got jobs in infrastructure projects. Farm yield has also been good. This has led to higher consumption,” says Singh. He also made a killing by selling onions at ₹3,500 a quintal when there was a shortage a few months ago. “I had bought 35 quintals at ₹900 a quintal and stored in my warehouse.” Singh bought a silver tea set worth ₹80,000 on Diwali this year.