Capital is a basic need in agriculture .how it is arranged by small medium and large farmer in India
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Modern farming method such as hybrid seeds, insecticides, chemical fertilizers etc require a great deal of capital. So, the farmers need more money than before. Money can be arranged by the farmers by the following ways.
1) The medium and large farmers have their own savings from farming business which they usually deposit in the banks. They use this surplus money whenever they are in need of it.
2) While most of the small farmers borrow money for their requirement of capital. They borrow money from the large farmers or money lenders within the village. Small farmers purchase various raw materials for cultivation of land on credit from the traders within the village. The money lenders charge a high rate of interest on the amount borrowed.
1) The medium and large farmers have their own savings from farming business which they usually deposit in the banks. They use this surplus money whenever they are in need of it.
2) While most of the small farmers borrow money for their requirement of capital. They borrow money from the large farmers or money lenders within the village. Small farmers purchase various raw materials for cultivation of land on credit from the traders within the village. The money lenders charge a high rate of interest on the amount borrowed.
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