Sale of Surplus Farm Products


 
 
Concept Explanation
 

Sale of Surplus Farm Products

Sale of Surplus Farm Products: The large and medium farmers of Palampur retain a part of the produced grain for their own use and sell the surplus in the market. Traders in the market buy these grains for selling them to the shopkeepers in cities and towns. These farmers earn a good amount of money through this sale and keep this in their bank account.

Later, they use this money to purchase inputs for the next farming season, purchase capital equipment or even give loans to small farmers. Some farmers also use this money to start activities in the non-farm sector. Thus, this surplus money increases their working capital as well as fixed capital.

 
 


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