Question

Role of marketable surplus in economic development

Answer 1

Here's your answer -

First we have to understand what are the meaning of these terms.

$\textbf{Surplus}$- It is the amount of product that a company manufactures or produces in excess.

$\textbf{Marketable Surplus}$ -Marketable surplus is a term that agriculturalists use to refer to a specific type of surplus that farmers ranchers deal with.

Now here the question arises that-

$\textbf{How this marketable surplus helps to economy development?}$

The role of marketable surplus in economic development has tended to be taken for granted but marketable surplus is the most critical or overriding constraint on economic development in both theoritical formulations and empirical studies. Its importance is more
significant for economic development in a developing economy like ours to meet the requirements of food and raw material of the non farm and urban population as industrialization and urbanization are expected to increase rapidly.

Increased marketable surplus will mean increased income with the farmers and consequently increased demand for manufactured goods industries.

It helps the policy makes to frame sound price policies for price support price control and minimum guarantee prices which are integral partof agricultural policies fod stimulating agricultural production and checking under price fluctuations.

Also it helps in imposing compulsory levy on producers so that in the fast developing economy the problem of feeding non-farm population can be dealt with.

Marketable surplus represents the theoretical surplus left with the farmer of disposal after his genuine requirements of family consumption, payment of wages in kind, seed are met.