It is majorly because they have to account for Loan repayment.
It is known fact that farmers who are not financially rich might have to borrow from financial institutions such as Bank, Microfinance bank to finance farm operation.
- Loan given by these banks are expected to be repay back with interest. Some bank charge as high as 20% for interest on loan.
- Failure to pay the loan as at when required leads to accumulation of the interest charged.
In conclusion, the loan repayment leads to why the farmer can not have a full gain on their crop while they are on sale.
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