How do small farmers obtain capital for farming? What is it consequences?
1. Most small farmers have to borrow money to arrange for their capital.
2. They borrow from large farmers or the money lenders or the traders who supply various inputs for cultivation.
3. These traders and money lenders charge very high interest rate.
4. The small farmers are put to great distress to repay the loan. E. Sometimes they caught in debt-trap.
