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Salboni’s Currency Press Printed New Notes, but Nearby Farmers Still Lacked Cash

In November 2016, Salboni’s currency press was producing new notes while nearby farmers struggled to pay harvest workers and secure timely bank credit. Printing was only one step; distribution and access determined who could use the cash.
From TheFinanceBase Team4 min to read
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In November 2016, a currency press in Salboni, West Bengal, was producing new banknotes as nearby farmers struggled to find cash to pay harvest workers and prepare for potato sowing. The apparent contradiction had a straightforward explanation: printing notes did not put them directly into local hands. Distribution through banks and access to cash or credit were separate bottlenecks.

Why didn’t the new notes reach nearby farmers?

A Scroll.in report by Subrata Nagachoudhury, published November 28, 2016, described the Salboni press increasing production after India’s November 8 demonetisation announcement. The plant had been producing large volumes of new Rs 2,000 notes since September; a shortage of Rs 500 notes prompted it to start printing the new Rs 500 design.

But a printing plant was not a local cash-distribution counter. Notes had to move from production into banking channels before people could withdraw them or banks could lend them. Salboni residents and farmers interviewed for the report said they could not readily access the cash they needed, even as the nearby press worked to increase output.

What the press was doing—and what it could not guarantee

The report described three shifts at the plant, including an added overnight shift from 11:30 p.m. to 6:30 a.m. It said regular days off had been suspended through March. Those details describe the press’s reported operations in November 2016, not its current schedule or output.

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Officials told the newspaper that preparing to print a new note design usually took 22 days, and that an ink shortage had delayed the start of the new Rs 500 run. They expected notes to reach Kolkata banks and ATMs by the end of the following week—a forecast at the time, not confirmation that they arrived then. The account described rail shipments for much of North India, trucks to the Reserve Bank of India branch in Kolkata, and onward air consignments to Guwahati.

Thali Kereppa, then the plant’s general manager, told Scroll.in that it was “a high-security operation” and that officials were not authorised to discuss developments. His comments underscore the limits of what the contemporary report could establish about the operation.

How the cash shortage threatened harvest work and potato sowing

Farmers described the shortage as a problem of timing as well as amount. Paddy needed to be harvested, and delays risked pushing back the next potato sowing cycle. In Salboni, that meant cash constraints could affect whether farmers could hire laborers when field work needed to happen.

Laborers left when payment was delayed

Sukumar Poira of Hatimari village said laborers left his fields after he told them their payment would be delayed. He said the paddy remained unharvested for almost a week and worried that he had missed the potato sowing window. His account links the cash shortage to a specific chain of events: difficulty paying workers, delayed harvesting, and concern about the next crop’s schedule.

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Family members helped bring in a damaged crop

Dharmidhar Mahato of Banomalipur said he could not get enough money from his bank to hire harvest laborers, so family members helped bring in what they could. He also reported elephant damage to his crop. The report presents the damage and the cash constraint as separate pressures on his harvest.

A possible production decline was a warning, not a final result

Panchayat leader Ajoy Mahato said potato sowing had already been delayed and predicted production “could drop by half” if the situation continued. That was a conditional forecast reported in 2016, not a measured estimate of what the eventual harvest produced.

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Why cooperative-bank credit did not immediately fill the gap

The report said agricultural cooperative banks were not allowed to exchange demonetised currency and lacked notes to meet demand for farmer credit. In practice, a loan approval did not necessarily mean the full amount was available when a farmer needed to spend it.

Arindam Bose, branch manager of Vidyasagar Central Cooperative Bank in Salboni, said, “The lending process has been totally disrupted.” He gave the example of a farmer with a sanctioned Rs 80,000 loan who could receive only Rs 20,000 per week. At that reported pace, Bose said, it could take about a month to receive the full amount—potentially after the potato sowing cycle. This was his example in November 2016, not evidence of a universal lending limit or present-day banking policy.

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What Salboni residents said about access to cash

Srikanta Mahato, then the Trinamool Congress MLA for Salboni, said the press had not helped the local area and remained beyond residents’ reach. Rally participant Chaya Mahato described the community’s dependence on physical cash: “We are not part of the banking chain,” she said. “We deal in liquid cash for our existence and cash is missing.” The statement, quoted by Nagachoudhury in Scroll.in on November 28, 2016, captures the gap between notes being produced nearby and residents being able to obtain them.

What this 2016 account can—and cannot—tell us

The report documents what residents, farmers, a bank manager, a local representative, and plant officials said during the immediate aftermath of the November 8, 2016 announcement. It explains why increased note production did not automatically resolve local cash access: distribution, bank availability, credit disbursement, and agricultural timing all mattered.

It does not establish whether the predicted potato-output decline occurred, how long the local shortage lasted, or what the Salboni press prints today. The account is a dated report on local conditions, not a current description of the press, banks, or farming in the area.

Read the November 28, 2016 Scroll.in report by Subrata Nagachoudhury.

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