Financial Struggles Faced by Small Farmers

Small farmers need to borrow money for farming because modern farming methods require a great deal of capital, and they may not have enough money to cover the costs of seeds, fertilizers, pesticides, water, and farm instrument repairs.

Most small farmers borrow money from large farmers, village moneylenders, or traders who supply various inputs for cultivation.

The rate of interest on loans for small farmers is very high.

<p>Savita needs to borrow money because she doesn't have enough cash to cover the working capital required for cultivating wheat on her land.</p> Signup and view all the answers

<p>Tejpal Singh offers to lend money to Savita at an interest rate of 24% per annum. In addition, Savita has to promise to work on Tejpal's field as a form laborer during the harvest season at ₹100 per day.</p> Signup and view all the answers