Gestation Period in Agriculture
Farmers borrow from various sources because:
- They want to invest in stock markets
- The gestation period between crop sowing and income realisation is quite long — Correct Answer
- They prefer borrowed money over savings
- Government mandates borrowing
Explanation:
Correct Answer Explanation
As the time of gestation period between crop sowing and realisation of income after production is quite long, farmers borrow from various sources to meet their initial investment needs.
Key Points:
- Farmers need credit for seeds, fertilisers, implements and other expenses.
- They also borrow for family expenses like marriage, death, religious ceremonies.
- This makes rural credit crucial for agricultural development.
Why Other Options Are Wrong
- A: Farmers borrow for agriculture, not stock markets.
- C: They borrow out of necessity, not preference.
- D: There is no government mandate for borrowing.
📚 About this Topic — CH-5: RURAL DEVELOPMENT
This multiple choice question is from CH-5: RURAL DEVELOPMENT, Indian Economic Development, NCERT Books. It has 4 options with a detailed explanation of the correct answer. Practice more MCQs from CH-5: RURAL DEVELOPMENT to strengthen your preparation.
