Glossary term
Marketed Surplus: Meaning and Definition
Reviewed and approved by Dr. Anamika ShrivastavaPublished Last updated
Marketed surplus is the portion of agricultural produce that farmers sell in the market instead of consuming at home. It matters because higher output helps the wider economy only if it reaches buyers. A large marketed surplus lowers foodgrain prices and supplies food to cities and industry.
In more detail
Marketed surplus links the farm to the wider economy. When farmers sell more, food becomes available to towns, prices fall relative to other goods, and the state can procure for storage. Small farmers keep a larger share for their own use, so their marketed surplus is smaller.
Example
If a farmer grows 100 quintals of wheat, keeps 30 for the household and sells 70, the marketed surplus is 70 quintals.
Key points
- Marketed surplus = output − farm consumption.
- It lowered relative food prices after the green revolution.
- Helps procurement and buffer stocks.
Common mistake
Counting total output as marketed surplus.
Related terms
Where it is explained
This term is explained in Class 11 Indian Economic Development Chapter 2: Indian Economy 1950-1990.