Question

The portion of agricultural produce which is sold in the market by the farmers is called:
1. household surplus
2. national surplus
3. agriculture surplus
4. marketed surplus

Answer 1

Correct Answer - Option 4 : marketed surplus

The portion of agricultural produce which is sold in the market by the farmers is called a marketed surplus.

1. Marketed 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.
   • The farmer has set expenses, including maintenance on machinery, labor costs, fertilizer, and the mortgage payment on their land.
   • For any farmer, there are many expenses that they incur while producing the product like the cost of inputs, any technical facilities employed for production etc.
   • These costs need to recover by the farmers by selling off their inputs to the market.
   • Thus, the marketable surplus is just the portion of the surplus that is available for selling to the ultimate customers.
   • Most of the farmers do not have the inputs to produce in excess of the household use that can be sold in the market.
   • Hence, in such a case marketable surplus is almost nil for low-income earning areas. Since the agricultural industry can be wildly unpredictable and is most susceptible to weather upsets, this surplus can be quickly eaten up by the costs of unusual or unexpected damage to the farmland.
2. Household surplus-
   • This refers to the number of crops available for the purpose of self-consumption by the farmers. It is represented by the number of crops that are used by the framers and their families for consumption in their daily life.
3. National surplus- National surplus can be understood as, an agricultural production that exceeds the needs of the society for which it is being produced, and may be exported or stored for future times.
4. Agriculture surplus- An excess in the agricultural output can be known as the bumper harvest. In some years, due to factors like suitable weather conditions, advanced irrigational facilities etc helps in the production of excess agricultural produce, is known as agriculture surplus.