farmers in India became bankrupt explain the following statement with reason
Answers
In our country 85% people are engaged in agriculture . And the contribution of farmers in GDP is very low. Farmers earning is from agriculture and allied sector. But due to bumper production of crops the earning of farmers is always low . They hardly save above 1000. Allied services provide additional income in emergency and allied activities are important so that farmers increase his income. Our government set Minimum Support Price for farmers so that they can sell their produce at MSP. MSP is that price on which govt purchase crops at some fixed price so that farmer not face cheat from middleman and retailers and able to earn some profit. Government also want to double up farmers income by 2022. But after doing so much for farmers , they are unable to increase their income due to lack of awareness , corrupt staff of administration and etc.
For payment of taxes , indian farmers started selling the crops at whatever price it received . The merchants and bakers started purchasing their goods at minimum rate . At certain times the farmers had to mortgage his land to the money lender for arrangement of money to pay the tax . Farmers became bankrupt .