What percentage of Indian farmers reported using cash for selling their produce in 2024 according to a recent survey?a) 79%b) 72%c) 88%d) 31%Correct answer is option 'B'. Can you explain this answer?

Question

Answer

Overview of the Survey
In 2024, a recent survey on Indian farmers revealed significant insights regarding their selling practices and payment methods. Understanding these patterns is crucial for assessing the economic behavior of farmers in India.
Cash Transactions in Agriculture
- The survey indicated that 72% of Indian farmers reported using cash for selling their produce.
- This statistic highlights the reliance on cash transactions within the agricultural sector, which remains prevalent despite advancements in digital payment systems.
Reasons for Cash Usage
- Limited Access to Banking Facilities: Many rural areas lack proper banking infrastructure, compelling farmers to prefer cash.
- Trust and Security Concerns: Farmers often trust cash transactions more than digital methods, fearing potential fraud or technological failures.
- Immediate Liquidity Needs: Cash provides instant liquidity, allowing farmers to manage their immediate expenses effectively.
Implications of Cash Usage
- Economic Impact: High cash dependency can hinder the transition to a more formalized and digitized economy, affecting credit access and financial inclusion.
- Policy Considerations: The findings suggest that policymakers need to address the barriers to digital transactions, ensuring farmers can benefit from modern financial services.
Conclusion
The survey's findings reveal that while 72% of Indian farmers still rely on cash for selling their produce, there is a pressing need to promote digital payment solutions. Addressing the underlying issues can help improve the economic conditions of farmers and enhance the efficiency of agricultural transactions.

Answer

In 2024, 72% of Indian farmers were still using cash for their transactions. This reflects a gradual decline from previous years, where cash transactions were at 88% in 2019. The ongoing shift towards digital payments indicates a slow but steady acceptance of technology among farmers. An interesting fact is that while cash transactions are still predominant, the increase in electronic payment adoption among farmers—from 8% in 2019 to 18% in 2024—demonstrates the potential for further growth in digital finance within the agricultural sector.

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