ProTeacher

Tag: Importance of Marketable Surplus

  • Class 11th Economics Indian Economy 1950 – 1990 Chapter-2 Question-5

    Go Back To Class 11th Economics Page

    Question 5. What is marketable surplus?

    Answer:
    Marketable surplus refers to that part of agricultural produce which the farmers sell in the market after meeting their own consumption requirements. It plays an important role in stabilising food prices and supplying food grains to urban and non-farming populations.

    EXTRA DRILLINGS

    Importance of Marketable Surplus

    • Helps in maintaining regular supply of food grains in the market

    • Enables the government to procure grains for buffer stock and public distribution

    • Contributes to price stability, especially during shortages

    • Supports growth of non-agricultural sectors by supplying food

    • Increased significantly during the Green Revolution period

    Numerical Example (Simple)

    Suppose a farmer produces 100 quintals of wheat in a year.

    • Kept for family consumption = 30 quintals

    • Used as seed and for livestock = 10 quintals

    Total personal use = 40 quintals

    👉 Marketable surplus = 100 − 40 = 60 quintals

    So, 60 quintals is the marketable surplus — the quantity sold in the market.

    Flow-chart 

    Total Agricultural Production
    ↓
    Farmer’s Own Consumption
    (food, seed, livestock use)
    ↓
    Remaining Produce
    ↓
    Marketable Surplus (Sold in the Market)

    Why Marketable Surplus is Important

    A higher marketable surplus increases food availability in the market, helps the government build buffer stocks, and ensures stable food prices, especially during shortages