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1.

Cost of Production: An increase in the cost of production factors such as labor, raw
materials, and energy can lead to a decrease in the supply of coffee beans. If it becomes
more expensive to grow and process coffee beans, producers may decide to grow or sell
fewer of them, reducing the overall supply.
Climate Conditions: Adverse weather conditions such as drought, excessive rainfall, and
pests can also decrease the supply of coffee beans. These conditions can damage crops,
reducing the amount of coffee that can be harvested and sold, thus decreasing the overall
supply of coffee beans.

2. There are arguments in favor of government protection of agricultural commodities,


which is often motivated by the following reasons:
Food Security: Governments may view the protection of certain agricultural commodities
as important for ensuring the availability of food for their citizens. For example, the
Indian government has implemented price controls on staple crops such as rice and wheat
to make these basic food items more affordable for the population, thereby ensuring food
security.
Support for Farmers: Governments may also seek to protect agricultural commodities in
order to support farmers, who often face market volatility and price fluctuations. For
example, the US government has implemented programs such as price supports for
certain commodities, such as corn and soybeans, to help farmers withstand market
downturns and maintain a stable income.
Promotion of Local Agriculture: In some cases, governments may seek to protect
agricultural commodities in order to promote local agriculture and reduce dependence on
imported food. For example, the European Union has implemented measures to protect
its farmers, such as tariffs on imported agriculture products, in order to support local
agriculture and ensure the availability of fresh and high-quality food for its citizens.
However, it's also worth noting that government protection of agricultural commodities
can have unintended consequences such as reduced competition and increased prices for
consumers. It's important for governments to weigh the benefits and drawbacks of these
policies before implementing them.

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