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How can price fluctuation affect a farmer?

Answer and explanation

Correct answer: The farmer’s income and profit may become uncertain

When market prices of crops rise and fall, a farmer cannot accurately predict the income earned from selling the produce. A fall in price may make it difficult to recover production costs, while a higher price may increase profit. Price fluctuation does not make production costs stable. Exam tip: link price fluctuation with farm income uncertainty and market risk.

Related tags

AgriculturePrice FluctuationFarm IncomeMarket RiskTraditional OccupationsTraditional Occupations In India AgricultureWorkLivelihood And CareerWork Livelihood And Career

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