what happens when farmers are caught in a vicious cycle of debt
Answers
Answer:
Explanation:
Sometimes, the failure of the crop makes loan repayment impossible. So, the farmers have to sell a part of their land to repay the loan. Credit in such a condition pushes the borrowers into a situation from which recovery is painful and they get into the debt trap
Answer: This is the anwer
Explanation:In the mid-afternoon, when most farmers are returning home to rest, Rana Ranjit Singh is sweating buckets on his farm in Uttar Pradesh's Hapur district, searching for vegetables left undamaged after untimely rain a couple of nights ago.
Singh, 62, sporting a partly-torn kurta-pyjama, is distressed at the loss of his wheat crop. "This is what is left for us to eat," says Singh, pointing to rotting and unripe crops of wheat and mustard in his field.
The damage caused by unseasonal rain has further hit the rural economy, already under the burden of falling prices. With prices of paddy, milk, etc, dropping in the past year, the incomes of farmers have dropped. Many attribute this to the "unfriendly policies" of the Bharatiya Janata Party (BJP)-led National Democratic Alliance government at the Centre.
The fall in prices has led many to take up sugar cane farming, which experts say isn't suitable to the climate of western Uttar Pradesh. Yet, farmers favour sugar cane because production of the crop is much higher than those of wheat and paddy. The minimum selling price for sugar cane, too, is much more than for any other crop.
Now, there's a major problem in this segment, too. Mills haven't paid farmers for last year, as well as the current one.
Lower incomes and unpaid dues have had a cascading effect on the rural economy - marriages are being delayed due to paucity of funds and many schools are turning away children due to non-payment of fees.
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