Question
How do farmers get into debt trap?
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| Serial No. | Example | What Does This Show |
| 1 | Imagine what would happen if farmers refuse to sell sugarcane to a particular sugar mill. The mill will have to shut down. | This is an example of the secondary or industrial sector being dependent on the primary. |
| 2 | Imagine what would happen to cotton cultivation if companies decide not to buy from the Indian market and import all cotton they need from other countries. Indian cotton cultivation will become less profitable and the farmers may even go bankrupt, if they cannot quickly switch to other crops. Cotton prices will fall. | |
| 3 | Farmers buy many goods such as tractors, pumpsets, electricity equipments, pesticides and fertilizers. Imagine what would happen if the price of fertilizers or pumpsets go up. Cost of cultivation of the farmers will rise and their profits will be reduced. | |
| 4 | People working in industrial and service sector need food. Imagine what would happen if there is a strike by transporters and lorries refuse to take vegetables, milk, etc from rural areas. Food will become scarce in urban areas whereas farmers will be unable to sell their products. |