Question:
Commodity price and marketed surplus would have negative relationship in the case of ?
Commodity price and marketed surplus would have negative relationship in the case of ?
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Only food/subsistence crops (like rice or wheat) show a negative relationship between price and marketed surplus because farmers consume them directly. Cash crops always have a positive relationship.
Updated On: Jul 24, 2026
- Rice
- Cotton
- Sugarcane
- Jute
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The Correct Option is A
Solution and Explanation
Step 1: Understanding the Concept:
Marketed surplus refers to the portion of total agricultural production that a farmer actually sells in the market after meeting their personal family consumption requirements.
Detailed Explanation:
Let us analyze the relationship between price and marketed surplus:
- For commercial/cash crops (such as (B) Cotton, (C) Sugarcane, and (D) Jute), farmers do not consume the crop at home. Therefore, any price increase leads to a positive supply response, increasing the marketed surplus.
- For subsistence food crops (such as (A) Rice), smallholder farmers consume a significant portion of what they produce.
- When the price of rice rises, the farmer's income increases. This positive income effect allows the farmer to consume more of their own high-quality food grain at home, which can actually decrease the quantity they choose to sell in the market.
- This creates an inverse (negative) relationship between commodity price and marketed surplus, also known as the backward-bending supply curve of subsistence crops.
Step 2: Final Answer:
The negative relationship occurs in the case of Rice, which corresponds to Option (A).
Marketed surplus refers to the portion of total agricultural production that a farmer actually sells in the market after meeting their personal family consumption requirements.
Detailed Explanation:
Let us analyze the relationship between price and marketed surplus:
- For commercial/cash crops (such as (B) Cotton, (C) Sugarcane, and (D) Jute), farmers do not consume the crop at home. Therefore, any price increase leads to a positive supply response, increasing the marketed surplus.
- For subsistence food crops (such as (A) Rice), smallholder farmers consume a significant portion of what they produce.
- When the price of rice rises, the farmer's income increases. This positive income effect allows the farmer to consume more of their own high-quality food grain at home, which can actually decrease the quantity they choose to sell in the market.
- This creates an inverse (negative) relationship between commodity price and marketed surplus, also known as the backward-bending supply curve of subsistence crops.
Step 2: Final Answer:
The negative relationship occurs in the case of Rice, which corresponds to Option (A).
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