Source: Textbook
Who profits from jute cultivation according to the jute growers’ lament? Explain.
Model Answer
According to the jute growers' lament, profits primarily go to traders and moneylenders, not the cultivators. Growers incur all cultivation costs and risks, from seeds to labor. Yet, they are forced to sell their harvested jute at minimal prices, barely covering expenses. The significant profits are captured by middlemen and moneylenders who buy raw jute cheaply, often extending high-interest loans. They then resell it at inflated market rates. This cycle traps farmers in poverty while enriching intermediaries, ensuring only they truly benefit from the cultivation.