Question

Explain the meaning of working capital describe its effect on day to day farming activities

Answer 1

Working capital refers to the capitals which doesn't retains for years or months or we may say that they are used up in every cultivtion. e.g. Money, seeds, chemical fertilizers, these can be used only once.
It has great effect on day to day farmer's life because every day they have to spend money to take care of their crops, buying fertilizers, pesticides, seeds, etc...