Throw light on the capital arrangment (needed for cultivation) done by the farmers
Answers
Answer:
Small farmers arrange their capital from moneylenders, big farmers, etc... They can't take loans because they can't do paper works needed to avail loan.
Explanation:
Answer:
Medium/Large farmers - They are the rich people with big farms. The output from
their farms is also big. Thus, they earn huge profits by selling their farm output and
can buy capital from their profits and savings.
Small Farmers - They are the poor farmers with small farms. The output from their
farms is also small. Thus, their profits are also less.
Hence, these farmers have to borrow money to buy capital.
They borrow from zamindars and big landlords who give loans at a very high rate of
interest. This adds on to the miseries of the farmers. The rate of interest on loans is
so high that it becomes difficult for them to pay it back. Hence, they get caught into
the DEBT TRAP.
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