Question

Under which circumstances poor farmers find themselves unable to pay back their loans? What happens after that?

Answer 1

Hint: - There are various circumstances where the farmers are forced to lend money for themselves from the loan providers.
-They earn their revenue from selling their crops. At certain times due to climatic conditions and unavailability of resources, the crops may fail and the farmers won't get sufficient revenue to repay what they borrowed.

Complete answer:
Poor farmers will undoubtedly take credits for farming purposes. At times they effectively take care of the advances yet there are things when they neglect to do that in time on account of harvest disappointment. This is an exceptionally difficult stretch for them.
For the family to endure, they need to acquire more cash. Before long the advance turns out to be enormous to such an extent that regardless of what they procure, they can't reimburse. This is the point at which we can say they are trapped owing debtors.
At whatever point the present circumstance happens, farmers become defenseless. Their powerlessness to reimburse the loan once in a while urges them to end their lives.
Banks may be reluctant to loan poor farmers since they ordinarily need to give the necessary documentation for advanced handling. They may likewise neglect to give insurance security as mentioned by the banks.
Poor farmers may take credit from cash loan specialists at higher paces of revenue for cultivating purposes and will be unable to repay. To overcome this they sell a part of their property and repay.

Hence the correct answer is option A.

Note:Steps taken by the government to help poor farmers:-
Monetary guide for cutting edge water system offices, ranch ponds, crop development, poultry, dairy improvement. Space in MIDCs for agro produce handling ventures.
Accessibility of seed, manures, pesticides, executes, water sources by dams, wells, turbines, and so on.
Discontinuous expansion in MSPs. Protection assurance, crop protections, remunerations on misfortunes by normal catastrophes. A few nations legitimately sanctioned "Law of horticulture Adjustments", while some kept 30 to 40 % of a nation's spending plan for cultivating.
Grant to their kids.
Conventional medication stores.
Sufficient land an incentive for land obtaining.