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Rural Development — Economics STD 12 Humanities & Commerce — Question

Rajasthan BoardEnglish MediumSTD 12 Humanities & CommerceEconomicsRural Development4 Marks
Question
Why is state intervention necessary to regulate the activities of private traders in the rural agricultural sector?
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Answer

Prior to independence, farmers were exploited by the private traders in many ways.
  1. While selling their produce to traders, farmers suffered faulty weighting and manipulation of accounts.
  2. Farmers who did not have the required information about the prevailing prices were often forced to sell at low prices.
  3. Lack of storage facilities did not allow farmers to keep back their produce to fetch a better price in future.
  4. Thus, state intervention became necessary to protect the small and marginal farmers from such exploitation.

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