Study the chain below, based on the situation of farmers at the time of independence:
Long gestation period between sowing and realisation of income → ? → Moneylenders and traders charge high interest and manipulate accounts → Small farmers are kept in a debt-trap
Which of the following fills the missing step?
Answer & explanation
Correct answer: option 2
The correct answer is Option (2) → Farmers borrow for seeds, fertilisers and family expenses
Income comes long after sowing, so farmers borrow for seeds, fertilisers and family expenses. At independence, moneylenders lent to them at high interest and kept them in debt.
NCERT (2026-27): “5.3 Credit and Marketing in Rural Areas … Credit: Growth of rural economy depends primarily on infusion of capital, from time to time, to realise higher productivity in agriculture and non-agriculture sectors. As the time of gestation period between crop sowing and realisation of income after production is quite long, farmers borrow from various sources to meet their initial investment on seeds, fertilisers, implements and other family expenses of marriage, death, religious ceremonies etc. At the time of independence, moneylenders and traders exploited small and marginal farmers and landless labourers by lending to them on high interest rates and by manipulating the accounts to keep them in a debt-trap. …” |