What Led to the Price Crash?

Speaking to NewsClick on the present Agrarian crisis, Dr. Vikas Rawal said that the deflation of rural wages caused by demonetisation is a major reason for the crash of agricultural crop prices. He also said that contrary to governments’ claims, there is no bumper crop this year - just normal production after 2 years of drought. There was no reason for prices to drop so precipitously, if not for demonetisation. The wages of agricultural workers in the rural areas dropped considerably due the shortage of cash, leading to a drop in their purchasing power. Hence, according to him the price fall is due to shortage of demand and not due to over production.