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Market divided on spending pattern of farmers

Updated: October 12th, 2018, 19:58 IST
in Home News, Metro
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Attabira (Bargarh): Notwithstanding the claims of increase in farmers’ income in rural Odisha especially the income of small and marginal farmers, the rural market in the Attabira block of Bargarh district seemed divided.

Most of the mobile phone outlets and electronic shops deny any appreciable change in the lifestyle of the small and marginal farmers and claimed that the change and scaled-up demand for more luxury goods in rural areas are confined more to the affluent farmers. However, the tractor companies claimed that there has been a surge in the sales of tractors and farm equipment in the area in the past two years.

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Although the automobile and tractor companies refrained from commenting on sales figures or giving an indication of growth or decline, some hinted at the magnitude of demand.

A leading tractor and farm equipment showroom, situated around 2 km ahead of the Attabira bus stop, said: “In Odisha as a whole, there has been a growth of around 40 per cent in tractor sales and 30 per cent in farm equipment in the last one year. Why would we open and expand our business if there is no growth in tractor/farm equipment sales.”

Lalit Pradhan has a mobile shop named Lalit Recharge Centre in Lachida village in the block which caters to nearby Bansipalli, Dumberpalli and other villages. He, however, said that small and marginal farmers were not takers of expensive mobiles and that there has hardly been any appreciable change in their spending pattern.

He said, “There has been a shift in the paying capacity of the people but not for all classes of people. Earlier, people used to seek phones in the range of Rs 2,500-Rs 3,500. Now, even in this rural area, people are ready to pay on average Rs 7,000-Rs 10,000 for smart phones. However, high-end phones are in demand by contractors and big farmers and not by all.”

Another electronic goods supplier who has his showroom near the Rengali Camp along Sambalpur-Bargarh road said, “Demands for luxury items especially air-conditioners have increased but the marginal and small farmers are the last to buy such products.”

Bankers, however, told Orissa POST the menace of bad loans on account of non-repayment by the farmers in the area persist despite some survey claiming increase in their incomes.

Jagabandhu Meher, Branch Manager of Utkal Grameen Bank, Kathadera, said, “Many farmers in the area often fail to repay the loans. Sometimes it (bad loan) goes up to as high as 80 per cent. Most of these loans disbursed by us are crop loans which are given without any collateral.”

Some bankers subtly agreed that due to high level of non-performing assets (NPAs) with rural banks, they have been advised not to sanction automobile loans. Others said land and gold are some of the easily available collateral given by them.

Manish Kumar, OP

 

 

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