Question

Given below are two statements, one is labelled as Assertion (A) and other one labelled as Reason (R).
Assertion (A): The efficiency of agricultural marketing is considered to be low.
Reason (R): There are a large number of intermediaries involved in the marketing of agricultural commodities. In light of the above statements, choose the correct answer from the options given below.

• A. Both (A) and (R) are true and (R) is the correct explanation of (A).
• B. Both (A) and (R) are true but (R) is NOT the correct explanation of (A).
• C. (A) is true but (R) is false.
• D. (A) is false but (R) is true.

Hint:

A long chain of intermediaries in agricultural marketing can lead to higher costs and lower efficiency.

Answer 1

The Correct Option is A

Both the assertion and reason are generally considered true, and the reason provides a valid explanation for the assertion. The involvement of numerous intermediaries often contributes to inefficiencies in agricultural marketing. This can manifest as increased costs for consumers, reduced returns for producers, and potential market distortions. Each intermediary adds their margin, potentially increasing the final price without a corresponding increase in value to the consumer.