Producer’s surplus: Meaning, Types of producers surplus, marketable surplus. Marketed surplus, importance, Factors affecting Marketable surplus. Marketing channels: Meaning, Definition, Channels for different products.
Blog post description.
Producer’s Surplus
Meaning
Producer’s surplus refers to the excess production that remains after meeting the producer's personal and family needs. This surplus is available for sale in the market.
Types of Producer’s Surplus
Marketable Surplus: The portion of production that is available for sale after meeting the farmer's consumption and seed requirements.
Marketed Surplus: The actual portion of the marketable surplus that is sold in the market. It may differ from marketable surplus due to factors like storage, distress sales, or hoarding.
Importance of Marketable Surplus
Ensures food security.
Supports economic growth through trade.
Stabilizes prices by maintaining supply.
Increases farmers’ income.
Facilitates agro-based industries by providing raw materials.
Factors Affecting Marketable Surplus
Size of Landholding: Larger farms tend to have a higher surplus.
Productivity: Higher crop yields result in more surplus.
Market Prices: Higher prices encourage farmers to sell more.
Consumption Needs: Higher family consumption reduces surplus.
Storage Facilities: Better storage options allow farmers to hold surplus for better pricing.
Government Policies: Minimum Support Prices (MSP), subsidies, and procurement policies impact surplus availability.
9. Marketing Channels
Meaning and Definition
A marketing channel refers to the path or route through which agricultural products move from producers to consumers. It includes all intermediaries involved in the distribution process.
Types of Marketing Channels for Different Products
For Grains (Wheat, Rice, Maize):
Producer → Wholesaler → Retailer → Consumer
Producer → Government Procurement Agency → Consumer
For Fruits and Vegetables:
Producer → Commission Agent → Retailer → Consumer
Producer → Cooperative Society → Consumer
For Milk and Dairy Products:
Producer → Dairy Cooperative → Retailer → Consumer
Producer → Private Dairy → Consumer
For Livestock and Meat:
Producer → Butcher → Consumer
Producer → Meat Processing Plant → Retailer → Consumer
Objective Type Questions
Multiple Choice Questions (MCQs)
Which of the following is NOT a component of a market? a) Buyers and Sellers
b) Climate Change
c) Demand and Supply
d) Price MechanismWhich type of market involves immediate delivery of goods? a) Futures Market
b) Spot Market
c) Monopoly Market
d) Regulated MarketWhat is the term for the portion of agricultural produce that is sold in the market? a) Marketable Surplus
b) Marketed Surplus
c) Consumption Surplus
d) Trade Surplus
Fill in the Blanks
The actual portion of production sold in the market is called ________.
________ market deals with the sale of agricultural inputs like fertilizers and seeds..