1 Introduction
Countries | Objectives | Effect |
---|---|---|
Brazil (1990 and 1993), Ghana (1982), Myanmar (1985 and 1987), Russia (1993), Venezuela (2016), Zimbabwe (2015) | To control hyperinflation | Positive effects Banking system regained its strength Gradual control over inflation Stabilization of consumer prices Gradual stabilization of economy The inception of counterfeit-resistant polymer notes in Australia Negative effects Loss of confidence in banking system Public unrest Public protest Contraction of output Drying of liquidity Loss of jobs |
North Korea (2009) | To curb the market of black money | |
Soviet Union (1991) | To fight against unearned income, smuggling and corruption | |
Iraq (1993) | To finance fiscal deficit | |
Greece (2013) and Cyprus (2015) | To manage fiscal and banking crisis | |
Australia (1988 and 2015) and Denmark (2012) | To prevent counterfeiting | |
Euro Region (2016) | To create common currency for the EU | |
Singapore (1967,1999 and 2014) | To mitigate high money laundering risk | |
Pakistan (2015) | To fight corruption and black money |
2 Research methods
2.1 Factor analysis
2.2 Garrett’s ranking technique
3 Results and discussion
3.1 Socio-economic profile of the respondents
Anand | Panchmahal | Total | |
---|---|---|---|
1. Age | |||
26 to 35 years | 5 | 1 | 6 |
36 to 45 years | 39 | 36 | 75 |
46 to 55 years | 41 | 53 | 94 |
Above 55 years | 15 | 10 | 25 |
Total | 100 | 100 | 200 |
2. Land holding | |||
Marginal (≤1 ha) | 39 | 47 | 86 |
Small (1–2 ha) | 38 | 38 | 76 |
Medium (2-4 ha) | 15 | 11 | 26 |
Large (≥ 4 ha) | 8 | 4 | 12 |
Total | 100 | 100 | 200 |
3. Income | |||
< 25,000 | 1 | 1 | 2 |
₹25001 to ₹50,000 | 16 | 24 | 40 |
₹50,001 to ₹75,000 | 36 | 46 | 82 |
₹75,001 to ₹100,000 | 22 | 15 | 37 |
> ₹100,000 | 25 | 14 | 39 |
Total | 100 | 100 | 200 |
4. Education | |||
Illiterate | 7 | 22 | 29 |
Primary | 34 | 34 | 68 |
Secondary | 24 | 27 | 51 |
Higher secondary | 19 | 13 | 32 |
Graduate | 16 | 4 | 20 |
Total | 100 | 100 | 200 |
3.2 Effect on agribusiness sub-systems
3.2.1 Effect on input supply sub-system
a. Seed | |
Purchased from | Private dealers and cooperatives. Owned seeds were also used |
Mode of purchase | On credit and on cash. It was charged high on credit purchase |
Delay in purchase | Due to non-availability of cash, the purchase delayed by 10–15 days |
Area sown | Impact on area sown initially. Sowing picked up later |
Percentage farmers affected | Around 72% farmers in Anand reported delayed sowing and 78% reported the same in Panchmahal (Farmers in Panchmahal generally move to urban area for earning in Rabi season) |
b. Fertilizers | |
Purchased from | Fertilizer depot and Cooperatives |
Mode of purchase | Cash (old currency notes), debit cards |
Delay in purchase | 3–4 days via cash (when govt directed to accept old notes) |
Promotional offer | GNFC offered 10% discount on the purchase of fertilizers through debit card |
Impact | Cashless transactions for the purchase of fertilizers increased by 34% |
c. Plant protection | |
Purchased from | Private dealers |
Mode of purchase | On credit and on cash |
Delay in purchase | Due to non-availability of cash, the purchase delayed by 10–15 days, in line with sowing |
d. Credit | |
Loan taken | 18% sample farmers had taken crop loan during kharif 2016-17 |
No. of Bank accounts opened | 15% sample farmers in Anand, and 34% farmers in Panchmahal applied for bank account post-demonetization All those who had dairy animals including landless laborers had to mandatorily register for bank accounts. 75% of landless laborers also applied for bank accounts post-demonetization |
e. Labor | |
Availability and Demand | Ample availability, less demand |
Mode of payments | Cash. Due to cash crunch, work scarcity. No one was willing to lend them. All borrowing from locals was based on personal relations |
Delayed payments | 1 week to 15 days. Payment was done in parts |
Substituted by | Family |
3.2.2 Effect on production sub-system
3.2.3 Effect on marketing sub-system
Kharif harvest | Nov 15 (₹/Qtl) | Nov 16 (₹/Qtl) | Nov 17 (₹/Qtl) |
---|---|---|---|
Okra (lady finger) | 2213.33 | 1841.67 | 2250.00 |
Bittergourd | 1940.00 | 1431.25 | 2107.00 |
Capsicum | 3875.00 | 2571.43 | NA |
Bottlegourd | 1267.46 | 537.05 | 1308.00 |
Cauliflower | 1758.52 | 997.67 | 1795.00 |
Chilli | 1100.00 | 650.00 | 1750.00 |
Delayed sales | A week to a fortnight, post-harvest losses increased for perishables. Retailers of perishables were more affected | ||
Payments made | Payments to cotton, tobacco, and paddy farmers since demonetization were made through cheque mode |
3.2.4 Effect on logistic providers, exporters and processors
3.2.5 Infrastructural bottlenecks before less cash economy
3.3 Farmers’ purchasing criteria during pre- and post-demonetization
3.3.1 Factors affecting food purchase decision in Anand
Pre-demonetization (Pre-DeMo) | Post-demonetization (Post-DeMo) | ||
---|---|---|---|
Seasonality | 4.25 | Locally produced | 4.68 |
Good for health | 4.2 | Personal relationship with shopkeeper | 4.56 |
Locally produced | 4.17 | Family size | 4.4 |
Freshness | 4.16 | Affordability | 4.24 |
Affordability | 4.1 | Seasonality | 4.17 |
Family size | 4.09 | Value for money | 4.15 |
Value for money | 3.98 | Good for health | 4.13 |
Promotional offer | 3.96 | Freshness | 3.76 |
Cleanliness | 3.94 | Promotional offer | 3.69 |
Personal relationship with shopkeeper | 3.5 | Cleanliness | 3.29 |
Overall quality | 3.17 | Taste | 3.22 |
Taste | 3.14 | Nearby availability | 2.96 |
Nearby availability | 2.89 | Variety of products availability at same place | 2.91 |
Variety of products availability at same place | 2.69 | Overall quality | 2.5 |
Good ambience | 2.34 | Cleanliness | 2.3 |
Color | 2.15 | Color | 2.14 |
Kaiser–Meyer–Olkin measure of sampling adequacy | 0.797 | |
Bartlett’s test of sphericity | Approx. Chi-square | 620.205 |
Df | 66 | |
Sig. | 0.000 |
Kaiser–Meyer–Olkin measure of sampling adequacy. | 0.790 | |
Bartlett’s test of sphericity | Approx. Chi-square | 271.622 |
Df | 66 | |
Sig. | 0.000 |
1 | 2 | 3 | 4 | 5 | |
---|---|---|---|---|---|
Seasonality | 0.721 | ||||
Overall quality | 0.71 | ||||
Nearby availability | 0.639 | ||||
Locally produced | 0.522 | ||||
Value for money | 0.789 | ||||
Freshness | 0.667 | ||||
Taste | 0.658 | ||||
Color | 0.502 | ||||
Personally relationship with shopkeeper | 0.759 | ||||
Promotional offer | 0.741 | ||||
Affordability | 0.812 | ||||
Family size | 0.809 | ||||
Variety of products availability at same place` | 0.895 | ||||
Good ambience | 0.792 | ||||
Cleanliness | 0.748 | ||||
Good for Health | |||||
Total variance explained (per cent) | 22.75 | 18.25 | 15.11 | 10.87 | 5.12 |
Cumulative variance (per cent) | 22.75 | 41.00 | 56.11 | 66.98 | 72.10 |
Cronbach’s alpha | 0.898 | 0.828 | 0.791 | 0.828 | 0.787 |
1 | 2 | 3 | 4 | 5 | |
---|---|---|---|---|---|
Affordability | 0.766 | ||||
Family size | 0.678 | ||||
Seasonality | 0.793 | ||||
Locally produced | 0.745 | ||||
Nearby availability | 0.698 | ||||
Overall quality | 0.567 | ||||
Value for money | 0.786 | ||||
Freshness | 0.645 | ||||
Promotional offer | 0.823 | ||||
Personal relationship with shopkeeper | 0.67 | ||||
Color | |||||
Taste | |||||
Good for health | |||||
Variety of products availability at same place | 0.797 | ||||
Good ambience | 0.676 | ||||
Cleanliness | 0.57 | ||||
Total variance explained (per cent) | 20.75 | 18.10 | 17.84 | 12.98 | 9.35 |
Cumulative variance (per cent) | 20.75 | 38.85 | 56.69 | 69.67 | 79.02 |
Cronbach’s alpha | 0.882 | 0.86 | 0.78 | 0.743 | 0.702 |
3.3.2 Factors affecting food purchase decision in Panchmahal
Pre-demonetization | Post-demonetization | ||
---|---|---|---|
Locally produced | 4.25 | Affordability | 4.25 |
Seasonality | 4.20 | Seasonality | 4.10 |
Affordability | 4.14 | Locally produced | 3.98 |
Family size | 3.93 | Family size | 3.84 |
Value for money | 3.87 | Value for money | 3.62 |
Nearby availability | 3.67 | Personal relationship with shopkeeper | 3.55 |
Freshness | 3.40 | Variety of products availability at same place | 3.33 |
Personal relationship with shopkeeper | 3.14 | Promotional offer | 3.07 |
Good for health | 2.98 | Good for health | 3.02 |
Cleanliness | 2.95 | Freshness | 2.87 |
Variety of products availability at same place | 2.75 | Cleanliness | 2.84 |
Overall quality | 2.30 | Overall quality | 2.53 |
Color | 2.24 | Nearby availability | 2.47 |
Taste | 2.02 | Taste | 2.42 |
Promotional offer | 1.95 | Color | 1.82 |
Good ambience | 1.85 | Good ambience | 1.8 |
Kaiser–Meyer–Olkin measure of sampling adequacy | 0.755 | |
Bartlett’s test of sphericity | Approx. Chi-square | 240.164 |
Df | 66 | |
Sig. | 0.000 |
Kaiser–Meyer–Olkin measure of sampling adequacy. | 0.646 | |
Bartlett’s test of sphericity | Approx. Chi-square | 185.867 |
Df | 66 | |
Sig. | 0.000 |
1 | 2 | 3 | 4 | 5 | 6 | |
---|---|---|---|---|---|---|
Seasonality | 0.717 | |||||
Nearby availability | 0.704 | |||||
Locally produced | 0.689 | |||||
Overall quality | 0.675 | |||||
Family size | 0.821 | |||||
Affordability | 0.765 | |||||
Value for money | 0.758 | |||||
Freshness | 0.713 | |||||
Personal relationship with shopkeeper | 0.706 | |||||
Promotional offer | 0.808 | |||||
Cleanliness | 0.78 | |||||
Variety of products availability at same place | 0.89 | |||||
Good ambience | ||||||
Taste | 0.80 | |||||
Good for health | 0.656 | |||||
Color | 0.55 | |||||
Total variance explained (per cent) | 20.12 | 15.5 | 12.35 | 9.92 | 6.09 | 5.57 |
Cumulative variance (per cent) | 20.12 | 35.62 | 47.97 | 57.89 | 63.98 | 69.55 |
Cronbach’s alpha | 0.857 | 0.81 | 0.776 | 0.787 | 0.698 | 0.734 |
1 | 2 | 3 | 4 | 5 | 6 | |
---|---|---|---|---|---|---|
Promotional offer | 0.765 | |||||
Personal relationship with shopkeeper | 0.622 | |||||
Affordability | 0.789 | |||||
Family size | 0.813 | |||||
Value for money | 0.837 | |||||
Freshness | 0.765 | |||||
Nearby availability | 0.65 | |||||
Locally produced | 0.766 | |||||
Overall quality | 0.754 | |||||
Seasonality | 0.728 | |||||
Variety of products availability at same place | 0.764 | |||||
Good ambience | ||||||
Cleanliness | 0.648 | |||||
Good for health | 0.734 | |||||
Color | 0.562 | |||||
Taste | 0.504 | |||||
Total variance explained (per cent) | 19.75 | 15.75 | 13.5 | 11.56 | 5.65 | 4.42 |
Cumulative variance (per cent) | 19.75 | 35.5 | 49 | 60.56 | 66.21 | 70.63 |
Cronbach’s alpha | 0.852 | 0.823 | 0.785 | 0.76 | 0.706 | 0.697 |
3.4 Problems of moving to a digital/cashless economy
S. no. | Problems | Anand | Panchmahal | ||
---|---|---|---|---|---|
Mean Garrett Score | Rank | Mean Garrett Score | Rank | ||
A | Awareness about digitalization | 53.76 | IV | 72.73 | I |
B | Language of banking system | 73.20 | II | 57.47 | IV |
C | Technical knowhow | 75.08 | I | 60.39 | III |
E | Transactions of small amount (to be done by cash only) | 42.75 | VI | 38.02 | VI |
G | Facility not available in small stores | 44.79 | V | 38.22 | V |
H | Illiteracy or low education | 58.78 | III | 68.44 | II |