In case of default on payment, who is held responsible?

When examining the responsibilities in a case of default on payment, the choice pointing to the farmer's cooperative is based on the structure and purpose of cooperatives in agriculture. A farmer's cooperative is typically formed as a collaborative entity that pools resources and shares risks among its members, which can include farmers seeking financial support or access to markets.

In many cases, when a loan is taken out by a cooperative, the legal and financial responsibility for repayment may rest with the cooperative itself rather than a single member farmer, unless otherwise specified in the loan agreement. This collective responsibility allows individual farmers to mitigate risk, making it less daunting for them to engage in farming operations. Thus, if a farmer defaults on a loan that was taken by the cooperative, the cooperative would be held responsible to cover the payment obligations.

Other entities like the government or the bank generally have specific roles in financial agreements but do not bear responsibility for the loans taken by cooperatives unless they have explicitly guaranteed them. Thus, the cooperative serves as the intermediary, responsible for managing payments and obligations tied to the loan.