A Holistic Review on Impact of Demonetization on Animal Husbandry Sector

Abstract

The impact created in the year 2016 by demonetization policy on India's animal husbandry industry analyse different effects which are critically analysed using different studies. The goal of demonetization, which invalidated ₹500 and ₹1000 banknotes, was to suppress corruption, burden the use of counterfeit money, and encourage online transactions [1,2]. Animal husbandry holds as strongest pillar of India's rural economy, and the current study of demonetization examines the short- and long-term effects on it. The short term effects like Price volatility, lack of liquidity, and decreased market demand particularly impacted small-scale livestock, dairy, and poultry producers [3]. The studies also suitably reveal that farmers faced many significant challenges, including loss of livelihood, disrupted supply chains, and restricted access to banking facilities, increased debt, and limited farm investments [4]. The Long-term effects included a rise in the use of formal banking, a move toward digital payments, and structural modifications to cooperatives. The present agriculture and allied industries scenario, which mainly depends on cash transactions, experienced significant disruptions in labor payments, input procurement, and livestock sales etc [2]. The report also assesses government actions, such as initiatives to promote digital payments, sector-specific relief programs, and financial inclusion The policy recommends the need for more efforts to raise digital literacy in rural communities, improved rural banking infrastructure in order to improve the sector's adaptability to future economic uncertainties [5,3].