Cash Crunch at Unjha APMC; Gujarat MP Meets FM Sitharaman

New Delhi: Mehsana Lok Sabha MP Haribhai Patel today met with Union Finance Minister Nirmala Sitharaman, seeking immediate intervention to address the cash liquidity crunch at the Agricultural Produce Market Committee (APMC) in Unjha, Gujarat.

Asia’s Largest Spice Market Faces Cash Shortage

Unjha APMC, recognised as one of Asia’s largest spice markets, is currently witnessing its peak arrival season, which typically runs from the last week of February to the first week of June. This year, the market is experiencing a massive inflow of commodities such as cumin (jeera), fennel (variyali), mustard (raida), isabgol, and sesame seeds, with production expected to be significantly higher than last year.

Farmers Facing Financial Strain

In a letter dated April 13, 2026, and during a subsequent meeting in New Delhi, Patel highlighted that farmers arriving from across Gujarat and neighbouring states prefer immediate cash payments within permissible limits. However, banking constraints in the region are hampering smooth trade operations.

Despite relaxations in Tax Deducted at Source (TDS) provisions on cash withdrawals for licensed traders, local banks are reportedly unable to ensure adequate cash availability to meet the surge in demand.

The liquidity crunch has led to:

– Financial distress among farmers, who are being compelled to sell their produce at lower prices
– Rising disputes between traders and farmers within the market
– Potential revenue losses for the state, along with broader setbacks to the agricultural ecosystem

Call for Immediate Action

Patel has requested the Centre to issue necessary directions to banking authorities to ensure adequate and immediate availability of cash in the Unjha region. He emphasized that timely intervention would provide significant relief to thousands of farmers and stakeholders associated with the market. DeshGujarat