Question

Why do most cotton farmers sell there Cotton to traders instead of selling it directly at the market?
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Answer 1

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❏ Farmers often have to borrow money from the local traders for meeting these expenses.

❏The traders charge a high rate of interest. They also put a condition that the farmer would sell cotton only to that trader and not anywhere else.

❏This forces a farmer to sell cotton at a price which is lower than the market rate.

Answer 2

Answer ♥️

❏ Farmers often have to borrow money from the local traders for meeting these expenses.

❏The traders charge a high rate of interest. They also put a condition that the farmer would sell cotton only to that trader and not anywhere else.

❏This forces a farmer to sell cotton at a price which is lower than the market rate.

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