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Dear student,

Farmers suffer a loss even when there is a good harvest because of the following reason :

• When there is a good harvest in a particular season for all the farmers, it creates glut (excessive surplus) in the economy. In such situation, the demand for the agriculture product is static but now there is excessive supply. This reduces the price of the agriculture product. Hence, the farmer receives even lesser amount for his bountiful harvest.
• The other reason could be that farmers do not have access to cold storage. Hence, they are forced to distress sell their products at cheaper prices.

Regards,