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Question

Which of the following is one of the risks farmers bear in contract farming?

A
Lack of resources
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B
Poor quality of harvest
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C
Low funding
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D
None of the above are risks farmers have to bear in contract farming.
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Solution

The correct option is B Poor quality of harvest
In contract farming, companies advise farmers to follow specific farming practices, and also provide financial support. The farmers bear certain risks in this. If the harvest is not of the quality desired by the company, then they can suffer a loss. Also, the farmers run the risk of a poor yield also. In addition, they may overuse fertilisers and exploit groundwater resources and this can lead to further issues.

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