Question

Farmers in India became bankrupt - Explain the statement with reasons.

Answer 1

because farmer take loan from bank for producing any type of product...after producing product ..he wants to sale this but without broker it is difficult ..he sale his product to broker in lower price....if farmer take loan of 20,000 & his produt takeby broker in 15,000 then obviously..farmer become bankrupt ..how he can repay the loan.

Answer 2

There were undesirable effects of the new land revenue system on the rural life. For payment of taxes,Indianfarmers started selling the crops at whatever price it received. The merchants and brokers started purchasing their goods at minimum rate. At certain times the farmer had to mortgage his land to the money lender for arrangement of money to pay the tax. Hence, farmer became bankrupt.