Question

Distress sale by the farmers refers to:

(1 Point)

The sale of crop immediately after harvest owing to urgent cash needs of the farmers

The sale of crop at the minimum support price fixed by the government

The sale of rotten crops

The sale of crops through the commission agent​

Answer 1

Answer:

the sale of rotten crop

Answer 2

Answer:

The sale of crops immediately after harvest owing to urgent cash needs of the farmers

Explanation:

• The first option is correct.
• There are circumstances where farmers are compelled to sell their immediate harvested product before the market.
• This is done at prevailing prices as there is a chance of prices falling further due to any emergency issues in the coming future.
• This is the reason why farmers find it better to sell their goods at available prices only during situations like these.
• This helps the farmers to avoid any problems or issues that they would have to face in the future.
• The farmers are compelled to accept lower prices for their goods but this sometimes leads to financial loss and economic problems as well.
• This occurs when their assets must be sold quickly, hence they barely are left with any other option.

Hence, the correct answer is: The sale of crops immediately after harvest owing to the urgent cash needs of the farmers

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