Question

Why do small farmers borrow money in Palampur?

Answer 1

The small farmers borrow some money from the bank as loan to start some or the other economic activities. Economic activities may also include Non-farm activities like small shops, etc....

hope this helps you.....

Answer 2

Small farmers have small plots of land .They can grow only a less number of crops .Therefore,they donot earn much and donot have their own savings .So they borrow money from big landowners.