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Farmers may suffer loss eben when there is good harvest

Answer» Owing to their poverty (and immediate need for cash) farmers are often driven to a distressed sale of their produce. But good harvest causes a glut (of supply) in the market. This causes a price-crash. The price may fall so much that the total revenue of the farmer decreases even when his output/sale is more than before.<br>Owing to their poverty (and immediate need for cash) farmers are often driven to a distressed sale of their produce. But good harvest causes a glut (of supply) in the market. This causes a price-crash. The price may fall so much that the total revenue of the farmer decreases even when his output/sale is more than before.


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