AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Jute farmers of Bengal were among the worst affected during the Great Depression. They grew raw jute processed into gunny bags for export. As gunny exports collapsed, raw jute prices crashed by more than 60 per cent. Despite falling prices, the colonial government refused to reduce revenue demands, forcing peasants deeper into hardship.
Farmers who had borrowed money hoping for better prices or higher incomes faced continuously falling prices and fell deeper and deeper into debt. They exhausted their savings, mortgaged lands, and sold jewellery to meet expenses. The traders paid them as little as Rs 5 per maund, making jute cultivation unprofitable and ruining their livelihoods entirely.
Source: Chapter 3, Section 3.5 – India and the Great Depression
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