A Study on Impact of the Demonetization on the Tea Plantation Workers in Kerala

Abstract

This paper examines the impact of demonetization on the Tea plantation workers in Kerala. On the 8th of November 2016, the Government of India, delivered a masterstroke, and declared as illegal tender, the Rs. 500/- and Rs. 1000/- denominations in the currency system.. This move had phenomenal impact on the economy of the country and this study is an attempt to analyze the positive and negative impacts of the note ban decision of the Indian government on the tea plantation workers. The Indian tea industry has an important role in Indian economy. With 85% of Indian households consuming tea, tea continues to be the leading stimulating beverage of India is largest consumer of worldwide and contribute accounts of 27% of the world production tea .The most challenging period of demonetization sits fairly in the active season for the tea industry. The tea plantations sector are heading towards a major crisis as payments are likely to get stuck or delayed due to the vacuum in liquidity generated after demonetization. The plantation sector, one of the largest sources for rural jobs, is facing the heat of demonetization because the management is not able to pay workers. This paper brings out key findings after interaction with the tea plantation workers as to incorporate real-time, relevant and contemporary data. The tea plantation workers have to conduct awareness program about the usage and importance of plastic money in the modern era and they have to motivate to open a saving account.