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Q.

Farmers are caught in debt because


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a

They are unable to pay back their loans

b

They wish to do so

c

They want to sell their crops to the trader

d

None of these 

answer is A.

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Detailed Solution

Farmers are caught in debt because they are unable to pay back their loans
Small farmers must borrow money from larger farmers at excessively high-interest rates because they lack capital. Additionally, the banks refuse to provide them with loans because they lack the necessary paperwork and collateral, such as a home, a farm, or any other piece of property to get a loan. Therefore, the revenue from farming is a vital factor in debt repayment. It will thus be impossible to repay the debt if crop output is unsuccessful. As a result, the small farmers must sell a portion of their land to pay back the debt. Credit led the borrower into a debt trap rather than improving the situation for small farms.
 
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