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Rural Development — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsRural Development3 Marks
Question
Why do farmers borrow?
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Answer

Borrowings of a farmer can be for the following purposes:
  1. Productive borrowings: These borrowings include loans to buy seeds, fertilisers and agricultural equipment and implements.
  2. Unproductive borrowings: These borrowings include loans for social purposes such as marriage and festive occasions, or to meet expenditure on illness, death, etc.

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