Discuss how the arrangement of capital is a great challenge for the small farmer with the help of the case study of Savita and Tezpal Singh (Page no-9).
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a big village, is 3 kms from Palampur. ... much smaller houses some of which are ... The narrative is partly based on a research study by Gilbert Etienne of a village in ... Discuss. • What is the working capital required by the farmer using modern farming ... With the help of his three sons ... Tejpal Singh, the large farmer..
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The arrangement of capital is indeed a great challenge for small farmers such as Savita
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- Savita, a small farmer, plans to cultivate wheat on her 1 hectare of land. She requires cash to buy seeds, pesticides & fertlisers & to repair & overhaul her farm instruments. The working capital itself is expected to cost at least INR 3000. As she does not have the money, she decides borrow the money from a big farmer named Tejpal Singh
- Tejpal Singh had agreed to lend Savita the loan of INR.3000/- @ interest of 24 per cent for around 4 months. He had also got her to agree to work on his field in the "harvest season" for INR about 35/day. As Savita had known that it would be challenging and hard for a small farmer like her to get a loan, she had agreed to Tejpal Singh's tough conditions.
- The condition of Savita would certainly have been better if she had taken bank loans. At a low interest rate, she would have had bank loan. Furthermore, instead of working for Tejpal Singh as a farmer, Savita could have spent more time in her field and improved her farming output.
- Hence, one can say that arranging working capital for small farmers pose big challenges due to several constraints in getting loans as well as lack of or limited knowledge of other sources of raising capital which would be beneficial for small farmers such as Savita.
To know more
What are the problems faced by the Indian farmers and how to solve it.
https://brainly.in/question/4023889
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