question_answer 16)

Why will Anm have a higher income from cultivation compared to Shyamal?  

Answer:

Arun gets a loan from the commercial bank at a rate of interest 8.5% per annum, while Shyamal gets loans from a village moneylender al an interest rate of 5% per month (i.e., 60% per annum). Arun has the capacity to pay bank loans as compared to Shyamal and gets a fresh loan in next three years. Like Shyamal he is not bound to sell his produce to the moneylenders who give a low price. He can sell his produce at market rates.