Question

How is capital arranged by farmers in Palampur? What is done with the surplus? Explain with examples.

Answer 1

Answer:

i) Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers

or the village money lenders or the traders who supply various inputs for cultivation.

ii) The rate of interest on such loan is very high. They are put to great distress to repay the loan.

iii) In contrast to small farmers, the medium and large farmers have their own savings from farming. They are

thus, able to arrange for the capita