Guntur: The demonetisation move has badly hit trade at Asia’s biggest chilli market yard here, with transactions dropping day by day by Rs 1 crore to Rs 2 crore, as chilli producers are reluctant to accept Rs 500 and Rs 1,000 demonetised notes.

The Guntur chilli yard is the oldest chilli yard that started in 1939 and provides livelihood to nearly 5,000 people, including licenced agents and workers. The absence of liquid cash further is dropping chilli prices.

The prices of hybrid varieties have come down from Rs 11,500-14,000 per tonne to Rs 7,000-Rs 9,000. Despite the huge drop in prices, no one is coming forward to purchase the chilli. J. Srinvasulu, P. Kondalu and other chilli producers said the prices were nose-diving, which would incur huge losses to the producers.

They said the restriction on withdrawing of money from bank accounts barred them to opt for online transactions as they have to pay cash to the workers, fertilisers/seeds shops, motors and others.

They said income on agriculture is ‘white money’, so the government should allow farmers to withdraw money from their accounts, which would be helpful for the restoration of business in the chilli yard. Chilli yard secretary M. Divakar confirmed the dip.