India's rural millions pay price of cash ban

Indian farmer Zakir Khan should be sowing his winter crops now. Instead he is stuck at home after the government's shock move to pull high-value notes out of circulation left him with no money to pay for seeds - or feed his family.

Like millions of rural Indians, Khan lives far from a bank and relies almost entirely on cash to pay for food and the seeds and fertilizer he needs.

Most of his notes are now worthless unless he can switch them for new ones or deposit them with a rural bank - many of which are yet to receive the new cash.

India's government asked its citizens to put up with what it called the "short-term inconvenience" when it announced the move to withdraw 85 percent of currency in circulation in a bid to tackle widespread tax evasion.

But for Khan, left with just 80 rupees ($1.2) in cash and with no more food in the house, it means a lot more than inconvenience.

"The government has robbed us," the 42-year-old told AFP in his native village in Bulandshahr district in the impoverished northern state of Uttar Pradesh.

"The government is saying these hardships are temporary, but if we are unable to sow our crops this month, we won't have anything to eat next year." 

Huge queues have formed outside banks and ATMs in cities across India as people try to swap their old notes for new ones, while many are finding ways to carry out their daily transactions online.

In rural areas though, none of that is possible.

To add to farmers' woes, the prices of vegetables and other staples have plummeted as a lack of cash in circulation hits demand.

Traders at Delhi's main produce wholesale market Azadpur Mandi say business is down by as much as 50 percent.

To try to ease the...