Understanding Demonetisation of Currency in India The Case of the Agricultural Commodity Market

Abstract

The thesis attempts a critical analysis of the impact of the demonetisation of the Indian currency, specifically in the agricultural commodity market in India. Demonetisation has been one of the most debated topics over the last year. Although the move affected most of the population, its overall impact is still unclear, and at times, unanticipated. The thesis first presents a snapshot of the available infrastructure at the time of the demonetisation [8 November, 2016], and then proceeds to illustrate how it unfolded over the subsequent months. The thesis also includes a survey of the impact of demonetisation among the farmers in the town of Deola in Nashik, Maharashtra. The dissertation then conducts a macro-economic data analysis of the vegetable prices in various states of India, over the last three years. The observations from the survey and data analysis lead to some concrete results displaying the impact of demonetisation on the agricultural commodity market.