Re-circulation of old notes boost business in Katsina grains market

The resumption of issuance of old naira notes by commercial banks in the country has occasioned a significant change in farm produce markets in Katsina State. For the last three months, cash scarcity has altered market price of agro-commodities in Katsina local markets. It was reported that buyers proffered two different prices to the farmers; […]

The resumption of issuance of old naira notes by commercial banks in the country has occasioned a significant change in farm produce markets in Katsina State.

For the last three months, cash scarcity has altered market price of agro-commodities in Katsina local markets.

It was reported that buyers proffered two different prices to the farmers; one for bank transfers and the other for cash payments with the former always higher.

Reports have also shown that prior to the recent directives by the CBN, grains merchants in the markets were buying maize at N21,000 for cashless payments and N18,000 if the seller preferred cash payment; same fate applied to sorghum, beans, soybeans and wheat.

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Shehu Halliru, a grain merchant, said the recent directives by the CBN that commercial banks should henceforth issue old naira notes till December has brought back life into the grain business in the state.

“We, the merchants, suffered more than the farmers because we had to go far to source for cash in order to satisfy those that prefered to be paid in cash. In most cases we obtained the cash at exorbitant charges, hence it replicated on the prices of goods we buy. We were paid through bank transfer by the companies we supplied with grains and in order to obtain cash, we have to go through strenuous processes in banks, and money agencies, in most cases, at exorbitant charges before we go back to the markets to source for the produce. Most local farmers have no bank account to transact with.”

Halliru added that with the recent development from the CBN, their business was running smoothly with prices of the commodities appreciating weekly.

According to the farmers, availability of cash in the markets have made transactions seamless as price of the commodities generally appreciated to their advantage.

Muhammad Hambali Doro said with the CBN’s order, normal business activities have returned.

“We are confident in the market now as the availability of cash is systematically phasing out bank transfers. It is sad that we suffered the cash crunch with no gain to show for it; small scale grain operators were badly affected as some of them have lost their capital in the unpopular policy,” said Muhammad Hambali.