Q1. [1] medium thorough-understanding
An agricultural trader in a village supplies farm inputs on credit at the start of the season and insists that farmers sell their harvested crop exclusively to him. Which of the following best explains why the trader imposes this condition?
(A) To help farmers get a better price for their crops in the market.
(B) To ensure timely repayment and earn additional profit from buying crops at low post-harvest prices.
(C) To prevent farmers from borrowing from the village moneylender.
(D) To comply with rules set by the Reserve Bank of India.
- A To help farmers get a better price for their crops in the market.
- B To ensure timely repayment and earn additional profit from buying crops at low post-harvest prices.
- C To prevent farmers from borrowing from the village moneylender.
- D To comply with rules set by the Reserve Bank of India.
Generated by claude-sonnet-4-6 · 2026-06-26 13:24 · grounding rag
Model Answer
(B) To ensure timely repayment and earn additional profit from buying crops at low post-harvest prices.
Explanation
The passage on Sonpur directly states: "the trader makes the farmers promise to sell the crop to him…to ensure that the money is repaid promptly. Also, since the crop prices are low after the harvest, the trader is able to make a profit from buying the crop at a low price." This makes (B) the only textbook-supported answer. Options A, C, and D are not supported by the passage.