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Q.

The majority of small farmers  borrow money to secure ____.


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Detailed Solution

The majority of small farmers borrow money to secure capital.
They take out loans from large farmers, moneylenders, or businessmen who provide different agricultural inputs. Farmers pay a high rate of interest to dealers and moneylenders. As a result, the condition of small and poor farmers worsens daily. They have no working capital at the beginning of an agricultural season, and they still have the same predicament at the end. They take out extremely high-interest loans to start working on their farms. Their overall yield is low because their plots are modest in size. As a result, they lack excess production to sell on the market. The majority of their manufacturing is kept for personal and family use.
 
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