What is the importance of marketable surplus?

The role at which agricultural production expands determines the pace of agricultural development, while the growth in the marketed surplus determines the pace of economic development. An increase in production must be accompanied by an increase in the marketable surplus for the economic development of the country.

How is marketable surplus helpful for farmers?

The larger the quantity actually marketed, greater the cash income to a farmer. Accordingly, crops also came to be known as cash crops, which earn more cash income to the farmers. In these crops, marketable surpluses are nearly 100 per cent. Such crops are called as cash crops or commercial crops.

What is marketable surplus How is it Utilised in the economy?

Marketable surplus refers to the difference between the total output produced by a farmer and his on-farm consumption. In other words, it is that portion of the total output that the farmer sells in the market. Marketable surplus = Total farm output produced by farmer – Own consumption of farm output.

What factors affect marketable surplus?

Region, type of crop, size of holding, size of family, price of crop output, level of production, seed and feed requirements and consumption habits are some of the the important factors which determine the quantity of the marketable surplus.

How is marketable surplus helpful for farmers Class 9?

Ans: Medium and large farmers sell surplus farm produce in the market and earn good money. The money so earned is used to buy capital for farming in the next season. Thus medium and large farmers are able to arrange for capital for farming from their own savings.

What is the difference between marketable and marketed surplus?

The marketed surplus is more than the marketable surplus when the farmer retains a smaller quantity of the crop than his actual requirements for family and farm needs. The marketed surplus is less than the marketable surplus when the farmers retain some of the surplus produce.

How is it helpful for farmers?

To create better crop diversity for human health and food security, farmers are working to create markets for new crops. Organic agriculture forges a path for sustainable food supplies. Organic farmers work to improve soil fertility by rotating crops, using cover crops and tilling the soil.

What are the significance of marketable surplus Class 12?

Marketable surplus refers to the difference between the total output produced by a farmer and his on-farm consumption. In other words, it is that portion of the total output that the farmer sells in the market. Marketable surplus = Total farm output produced by farmer – Own consumption of farm output.

What is a marketable surplus?

In agriculture, marketable surplus represents the surplus of a harvest that can be sold for profit after a farmer sells their crop to cover the costs of maintaining and operating their farm.

What are the important changes in farm activities?

Over the years, there have been important changes in the way of farming, which have allowed the farmers to produce more crops from the same amount of land. (b) Use of modern farming methods. Due to these changes (in the late 1960s) productivity of land has increased substantially which is known as Green Revolution.

What is marketable surplus Class 9 CBSE?

Answer: Marketable surplus refers to the difference between the total agricultural produce by a farmer and their own requirements. Or. The portion of agricultural produce which is sold in the market by the farmers, after meeting their own requirements, is called marketable surplus.

What is the relationship between marketable and marketed surplus?

Relationship between marketed surplus and marketable surplus The marketed surplus is more than the marketable surplus when the farmer retains a smaller quantity of the crop than his actual requirements for family and farm needs.

What are marketable surpluses and marketed surpluses of commodities?

Thus, two concepts viz. “marketable surplus” and “marketed surplus” have been coined to ascertain the quantity of produce available for marketing and the quantity actually marketed. The quantities are estimated as mentioned below:- 1. Production on a farm. 2. Utilization. Seed purpose. Home consumption.

What is the importance of surplus in business?

Different kinds of surplus play a huge role in production and sales. One type of surplus can keep a company afloat and thriving, while another can cause a drop in sales and increased financial loss.

How does warehousing help to stabilize the market?

Price stabilization: Warehouses reduce violent fluctuations in prices by storing goods when their supply exceeds demand and by releasing them when the demand is more than immediate productions. Warehouses ensure a regular supply of goods in the market. This matching of supply with demand helps to stabilise prices.

How are supply and demand and producer surplus related?

Supply and demand, consumer surplus and producer surplus all play a role in how companies price and market their products. One of the primary goals of any given company is to make a profit off their products. Therefore, companies aim to take in as large of a producer surplus as they can.