Question

Given below are two statements: one is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A): Marketed surplus can be more than marketable surplus.
Reason (R): The situation arises when the farmers have profitable sale for their commodity.

• A. Both (A) and (R) are correct and (R) is the correct explanation of (A)
• B. Both (A) and (R) are correct but (R) is not the correct explanation of (A)
• C. (A) is correct but (R) is not correct
• D. (A) is not correct but (R) is correct

Hint:

Large farmers usually have Marketable Surplus $>$ Marketed Surplus (they hold back stock for better prices). Small/Marginal farmers often have Marketed Surplus $>$ Marketable Surplus (Distress Sale).

Answer 1

The Correct Option is C

Concept: In agricultural marketing, we distinguish between what a farmer *can* sell (Marketable Surplus) and what a farmer *actually* sells (Marketed Surplus). Marketable Surplus = Total Production - Total Requirements (Family consumption, seeds, feed, etc.).

Step 1: Evaluate Assertion (A).
Marketed surplus can indeed be more than marketable surplus. This occurs when a farmer sells more than their actual surplus, often dipping into the stock required for family consumption or future seeds. This is known as "Distress Sale." Thus, (A) is correct.

Step 2: Evaluate Reason (R).
The reason states this happens when sales are "profitable." This is incorrect. The situation where marketed surplus exceeds marketable surplus usually arises due to the farmer's urgent need for immediate cash to pay off debts or meet social obligations, regardless of price. It is a sign of financial "distress," not profit-seeking. Thus, (R) is incorrect.

Step 3: Conclusion.
Assertion (A) is true, but Reason (R) is false.