|  Traders, processors, input suppliers and exporters are a major source of financial services to rural, agriculture dependent households. These buyers and suppliers provide credit to farmers as part of input supply and product purchase transactions. This inter-linking of credit with other services helps to reduce the risk associated with agricultural lending, particularly when the credit is tied to subsequent sale of produce. The type of financial products provided by buyers and suppliers is usually limited to seasonal credit and short term advances but, nevertheless, it has been found to be at least as important to farmers as loans from specialist financial intermediaries. | |
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