Commercialisation of agriculture is an indication of _______.

Question

Question

This question was previously asked in

SSC CGL 2023 Tier-I Official Paper (Held On: 27 Jul 2023 Shift 1)

Answer 1

The correct answer is Marketable surplus.Key Points

Commercialisation of agriculture refers to the process of transforming agriculture from a subsistence-based activity to a commercial enterprise.
This involves producing crops and goods not only for personal consumption but also for sale in the market.
When agriculture is commercialised, there is an increase in marketable surplus, which is the amount of agricultural produce that is available for sale in the market after meeting the needs of the producers and their families.
This surplus can be sold for a profit, leading to an increase in income for the farmers.
Producers' surplus refers to the difference between the price at which the producer is willing to sell a product and the actual price they receive in the market.
- This surplus is maximised when the producer is able to sell their product at a higher price than their cost of production.
Consumer surplus refers to the difference between the price that consumers are willing to pay for a product and the actual price they pay.
- This surplus is maximised when the price of the product is lower than the value that consumers place on it.
Income surplus refers to the increase in income that is generated as a result of commercialisation of agriculture.
- This surplus is maximised when the marketable surplus is sold at a price that is higher than the cost of production.

Additional Information

The term 'commercialisation of agriculture' is often associated with the Green Revolution, which was a period of significant agricultural innovation and productivity growth that occurred in the 1960s and 1970s.
The Green Revolution involved the introduction of new crop varieties, improved irrigation systems, and the use of fertilisers and pesticides.
These innovations led to a significant increase in agricultural productivity and helped to alleviate food shortages in many parts of the world.
However, there are also concerns about the negative environmental and social impacts of commercialisation of agriculture, such as soil degradation, water pollution, and displacement of small-scale farmers.
In addition to marketable surplus, commercialisation of agriculture can also lead to the emergence of agribusinesses, which are large-scale, commercial enterprises that are involved in various aspects of agriculture, such as production, processing, and distribution.