Quick Answer: Why Do Farmers Take Loan From The Traders How Do They Repay It?

Why do small farmers borrow money from large farmers?

Most small farmers have to borrow money to arrange for the capital.

They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation.

The rate of interest on such loans is very high.

They are put to great distress to repay the loan..

Why do farmers need credit or loan class 10?

1 Answer. Farmers require credit to purchase the raw material and inputs for agriculture.

Why do villagers borrow money?

Answer: Poor people in village borrow money from the mukadam to meet their basic needs like food and clothes.

Under what circumstances do poor farmers find themselves unable to pay back their loans?

Soon the loan becomes so large that no matter what they earn, they are unable to repay. This is when we can say they are caught in debt. Whenever this situation occurs, farmers become helpless. Their helplessness to repay the loan sometimes compels them to commit suicide.

Why do landless Labourers have to borrow money?

To take care of their basic needs, small farmers and landless labourers usually have to borrow money from big money lenders in the village. The loans are given at a high interest rate. The farmers, thus, have to keep borrowing money in order to repay their loans.

Why do farmers take loan from the traders?

Small and medium farmers are forced to borrow from moneylenders,traders,millers etc because it is very difficult for them to obtain a loan from regular banks.

How does farmer pay back the loan to Trader?

How does he pay back the loan to trader? Ans: He pays back the loan to trader by selling his paddy to him at a lower price.

Why do farmers take loan from the traders how do they repay it Class 6?

Answer: Farmers borrow money from the moneylenders and traders to buy seeds, pesticides and fertilisers. … In order to repay the money to the lenders, they are forced to mortgage or sell their lands. Hence, they become landless.

Why is getting loan difficult for a small farmer?

Most small farmers have to borrow money to arrange for the capital. They borrow from large farmers or the village moneylenders or the traders who supply various inputs for cultivation. The rate of interest on such loans is very high. They are put to great distress to repay the loan.

How do farmers like Ramalingam get rich?

Ramalingam is a big farmer having twenty acres of land. Sekar takes loan from Thulasi and buys seeds and fertilizers. In coastal areas we find fishing villages. … Sekar takes help of other small farmers at the time of harvesting.

What steps can be taken by the government to help small farmers when they get into a debt?

Hint: The government will do the following things to assist farmers like Sekar once they get into debt: Provision of straightforward farming loans from the banks at a low rate of interest. Insurance of their cultivation. Provision of supported fertilizers, pesticides, and HYV seeds.

What are three things that can ruin a crop?

Animals such as rabbits, deer, raccoons, crows, gophers, and skunks can all ruin a farmer’s crop by eating or trampling them. Bugs such as caterpillars, stink bugs, bollworms, grasshoppers, locust, etc. can ruin crops by the hundreds if there’s enough of them.