Question

Why crops like coffee considered as commercial crops

Answer 1

So the crop like coffee, tea, jute , cotton & even cocoa will be always come in the category of commercial crop but the crop like sugarcane, beet root, maize could come in both commercial as well as food crop. But it depends upon the farmer also that he sell it to the factory or to the people.

Answer 2

Commercial crops is one of the agricultural crop which grown for sales and return to profit. The commercial crops are

1.Cotton

2.Sugarcane

3.Jute and Mesta

4.Oilseeds

5.Tea

6.Tobacco etc


A cash crop or profit crop is an agricultural crop which is grown to sell for profit. It is typically purchased by parties separate from a farm. The term is used to differentiate marketed crops from subsistence crops, which are those fed to the producer's own livestock or grown as food for the producer's family. In earlier times cash crops were usually only a small (but vital) part of a farm's total yield, while today, especially in developed countries, almost all crops are mainly grown for revenue. In the least developed countries, cash crops are usually crops which attract demand in more developed nations, and hence have some export value.

Prices for major cash crops are set in commodity markets with global scope, with some local variation (termed as "basis") based on freight costs and local supply and demand balance. A consequence of this is that a nation, region, or individual producer relying on such a crop may suffer low prices should a bumper crop elsewhere lead to excess supply on the global markets. This system has been criticized by traditional farmers. Coffee is an example of a product that has been susceptible to significant commodity futures price variations.



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