Question

how do the medium and large farmers obtain capital for forming ?how is it different from small farmers

Answer 1

Medium and Large farmers arrange/obtain the capital required from their previous season's surplus crops that they acquire money from and the cycle continuous . Whereas, the small farmers have a very small patch of land because of which the surplus crops they attain each cropping season is too less to arrange for the capital for the next season which is why they take loans from moneylenders. But the moneylenders lend the money to these farmers at very high rates of interest (24%) and the small farmers get stuck in the viscous cycle of indebtedness