Question

Why do small and medium farmers fall into indebtedness?

• A. Small and medium farmers borrow money from moneylenders.
• B. Small and medium farmers do not easily get loans from banks.
• C. Small and medium farmers sell their produce to the moneylenders and tillers at the price quoted by them.
• D. Small and medium farmers pay commission to middlemen.

Answer 1

Answer: (A), (B), (C), (D)

The correct options are
A Small and medium farmers borrow money from moneylenders.
B Small and medium farmers do not easily get loans from banks.
C Small and medium farmers sell their produce to the moneylenders and tillers at the price quoted by them.
D Small and medium farmers pay commission to middlemen.

Small and medium farmers fall into indebtedness as they borrow money from moneylenders for different stages in the process of farming. They do not easily get loans from banks. Since small and medium farmers borrow money from moneylenders and tillers, they have to sell their produce to these moneylenders and tillers at the price quoted by them. Apart from this, small and medium farmers have to pay commission to the middlemen involved in different stages of trading.