What is marketable surplus?
Marketed surplus refers to the portion of agricultural produce which is sold in the market by the farmers. It is distinct from the produce that farmers consume themselves.
When a substantial amount of agricultural produce is sold in the market, it makes a significant difference to the economy. During the green revolution period, a good proportion of rice and wheat was sold by farmers as marketed surplus. This led to a decline in the relative prices of food grains, benefiting low-income groups who spend a large percentage of their income on food. The marketed surplus also enabled the government to procure sufficient food grains to build stocks for times of food shortage.
Explanation
The provided context defines 'marketed surplus' as the portion of agricultural produce sold in the market by farmers. The question asks about 'marketable surplus,' but the context only discusses 'marketed surplus.' In economics, marketed surplus refers to what is actually sold in the market, while marketable surplus typically refers to what can potentially be sold (production minus self-consumption). The answer is based strictly on the provided context which discusses 'marketed surplus.'