Economics
What are the reasons that make Swapna’s situation so risky? Discuss factors – pesticides; role of moneylenders; climate.
Money & Credit
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Answer
Farmers like Swapna face several risks, and their situation can be precarious due to various factors. Following are the reasons that make Swapna’s situation so risky:
- Vulnerability due to extreme weather like famine, drought, floods etc.
- Unpredictable rainfall
- Attack of pests and diseases
- Fluctuations in crop prices and exploitation by middle men while selling the produce.
- Borrowing from informal moneylenders at high interest rates can trap Swapna in debt cycles.
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