Why will Arun have a higher income from cultivation compared to Shyamlal as given in the story on page 40?
Arun will have a higher income than Shyamlal because:
- Arun has seven acres of land as compared to Shyamlal who has only 1.5 acres of land
- Shyamlal used to borrow money from the village moneylender at a rate of 60% per annum and now he borrows money at the rate of 36% per annum whereas Arun borrows money from the bank at the rate of 8.5 % per annum.
- There is pressure on Shyamlal to sell his produce to the moneylender whereas Arun is free to sell his produce to the sellers giving best price for his produce
- Arun has the freedom of repaying back the loan anytime in three years. Therefore, he stores the surplus produce in the cold storage and takes fresh loan against this, whereas no such facility is available to Shyamlal.