Agricultural Pen eee te ee cen eet Producing Products with the Best Quality and Processing Process Page 1 of 21What is Utility (form and type) In economics, utility refers to the satisfaction a consumer gets from a good or service. There are different types: + Form utility: This is based on the design and functionality of a product itself. A well-designed phone is more useful than a clunky one, What is Price (Welf and Welfare Price is the monetary cost of a good or service. It affects welfare (economic well-being) in two ways: + Consumers: Low prices increase welfare as they can afford more. High prices can strain budgets. + Producers: Low prices can hurt producers if they can't cover costs. Fair prices ensure healthy markets and contribute to overall welfare. Producing Products with the Best Quality and Processing Process Page 2 of 21What Humans Want and Character of Human Wants Humans are driven by desires, which become wants for specific things. These wants have some key features: + Unlimited: We crave more and more, even after fulfilling some desires, + Varied Intensity: Some wants are urgent (hunger), while others are less pressing (new clothes). + Competing: Limited resources mean we stronger wants. + Satiable (to an extent): We can fulfill individual wants, but new ones arise. + Ever-changi influences. : Wants evolve with age, experiences, and societal Producing Products with the Best Quality and Processing Process Page 3 of 21Classification of wants , Necessary Comfortand Luxurys Law of diminishing Our desires can be classified into three categories: Necessities (5 lines a day): Essential for survival, like food, water, and shelter. 2.Comforts (furnishings, entertainment): Enhance well-being but not essential. They make life more enjoyable. 3. Luxuries (jewelry, vacations): Non-essential but desirable goods that signal status or provide great pleasure. Law of Diminishing Marginal Utility : The more you consume something, the less additional satisfaction you get from each extra unit. For example, the first slice of pizza is amazing, but the 10th might not be as exciting, Producing Products with the Best Quality and Processing Process Page 4 of 21Collection and Presveration In agriculture, collection and preservation go hand-in-hand: 41.Collection: Gathering seeds, plant cuttings, or livestock for future use This ensures access to desired varieties. 2.Seed Banks: Store seeds in controlled environments (low temp, low humidity) for long-term viability. 3.Field Gene Banks: Maintain diverse crop varieties growing in fields for ‘ongoing access and resilience. 4.Cryopreservation: Freezing plant tissues or animal sperm/eggs in liquid nitrogen for very long storage. 5.Traditional Methods: Farmers also preserve by saving seeds from their harvests for replanting next season. Producing Products with the Best Quality and Processing Process Page 5 of 21what is demand , function and type In agriculture, demand refers to consumer willingness and ability to buy farm products: + Factors: Income, price, preferences, and availability influence demand. + Demand Function: This mathematical formula shows how quantity demanded changes with price (generally, lower price = higher demand) + Types of Demand: © Inelastic: Demand barely changes with price swings (e.g., essential food staples). © Elastic: Demand changes significantly with price swings (e.g. luxury fruits) Producing Products with the Best Quality and Processing Process Page 6 of 21Factors Affecting Demand in Agriculture and Importance + Price: Lower price generally leads to higher demand, and vice versa. + Income: Rising income can increase demand for higher-quality or non-essential food items. + Consumer Preferences: Tastes, health trends, and convenience influence what people buy. (Think organic vs. conventional produce.) + Substitutes & Complements: Availability of cheaper alternatives or products consumed together (like bread and butter) affect demand. + Seasonality: Demand for some products fluctuates with seasons (e.g., higher for strawberries in summer) Importance of Demand Understanding + Knowing demand helps farmers make informed decisions about: What crops/livestock to raise to meet market needs. ® Pricing strategies to maximize profit within a competitive market. © Marketing efforts to target specific consumer preferences. Producing Products with the Best Quality and Processing Process Page 7 of 21Importance of economics Resource Allocation: Helps societies decide how to distribute scarce resources for maximum benefit. Decision Making: Informs individuals, businesses, and governments, ‘on choices affecting finances and well-being, + Understanding Markets: Explains how supply and demand interact, shaping prices and influencing production, Policy & Prediction: Guides economic policies to promote growth, stability, and address issues like unemployment. Informed Citizenry: Equips people to understand economic news, trends, and make informed personal financial decisions, Producing Products with the Best Quality and Processing Process Page 8 of 21GST (Goods and Services Tax) brings several advantages iminates Cascading Effect: No more "tax on tax"! GST avoids double taxation, reducing the final price of goods. + Simplified Compliance: Fewer tax forms and a single online filing system make things easier for businesses. + Boosts Efficiency: Streamlined logistics with fewer tax checkpoints lead to faster movement of goods. + Wider Tax Base: More businesses register under GST, increasing overall tax revenue. + Transparency & Fairness: A uniform tax system promotes fair competition and reduces tax evasion. Producing Products with the Best Quality and Processing Process Page 9 of 21GST plays a mixed role in Indian agriculture, offering benefits + Reduced Input Costs: GST lowers taxes on most agricultural inputs like seeds, fertilizers, and equipment. This can decrease farming costs. + Seamless Movement: GST eases interstate movement of produce by eliminating multiple state taxes. This can improve market access for farmers. + Transparency: Input tax credit system allows farmers to claim credit for taxes paid on inputs, reducing hidden costs. However: + Most farm outputs are exempt from GST, limiting direct tax benefits for farmers. + Complexities for some value-added agriculture activities like processing can add burden. Producing Products with the Best Quality and Processing Process Page 10 of 21Utility ID importance and Type Importance: + Account Management: IDs link customers to their specific service accounts, enabling providers to track usage and billing. + Security: Verification: IDs help validate a customer's identity when accessing accounts or requesting service changes. + Efficiency: Streamlined Service: IDs allow providers to quickly access ‘customer information for faster service and troubleshooting. Types: * Account Numbers: Traditional alphanumeric codes for customer identification + Meter Numbers: Unique identifiers linked to physical meters for tracking individual usage. + Customer IDs: Internal identifiers assigned by the utility company for account management. Producing Products with the Best Quality and Processing Process Page 11 of 21Agricultural production economics 1.Analyzes how farms use resources (land, labor, capital) to optimize ‘output and profit. 2.Considers factors like input costs, product prices, and consumer demand, 3.Helps farmers decide what crops/livestock to raise, how much to produce, and how to allocate resources efficiently. 4.Aims to ensure food security and economic well-being for farmers and consumers, 5.Crucial for understanding challenges and opportunities in the agricultural sector. Producing Products with the Best Quality and Processing Process Page 12 of 21Subject matter of agricultural economics and objectives Subject Matter: Analyzes production costs, market forces, and consumer behavior impacting agriculture. 2.Objectives: Aims to: + Improve farm profitability through efficient resource allocation and pricing strategies. + Ensure food security by understanding consumer demand and optimizing production. + Promote sustainable practices that balance economic goals with environmental concerns. 3. By understanding economic forces, agricultural economics helps farmers make informed decisions and navigate the complex agricultural market. Producing Products with the Best Quality and Processing Process Page 13 of 21,Agricultural economics tackles the financial aspects of farming, impacting various fields crucial for the industry {Production Economics: Analyzes costs, resource allocation, and ‘output to maximize farm profitability. 2.Marketing & Trade: Studies consumer demand, pricing strategies, and international trade to connect farmers with markets. 3.Resource Economics: Focuses on efficient land-use, water management, and conservation practices for sustainability. 4,Development Economics: Addresses challenges faced by small-scale farmers and promotes agricultural growth in developing countries. 5.Policy Analysis: Evaluates the impact of government policies on farm income, food prices, and rural development. Producing Products with the Best Quality and Processing Process Page 14 of 21Basic Production Problem Resource limitations: Farmers have limited land, water, labor, and financial resources to produce crops or raise livestock. 2.Balancing Act: The goal is to maximize output (yield or animal production) using these limited resources. 3.Decision Making: Farmers need to decide what crops/livestock to raise, how much to produce, and how to allocate resources efficiently. 4,Unexpected Challenges: Weather, pests, diseases, and market fluctuations can disrupt production plans and reduce yields. 5.Constant Optimization: Farmers strive to adapt and improve their practices to overcome these challenges and ensure sustainable production. Producing Products with the Best Quality and Processing Process Page 15 of 21,Law of Returns 1L Adding Inputs: As you increase one factor of production (e.g. fertilizer) while holding others constant (land, labor) initial output increases. 2.Diminishing Gains: However, eventually, the additional output gained from each extra unit of input starts to decrease. ted Resources: Land, sunlight, water, etc., become limiting factors. More fertilizer might not benefit plants if these are restricted. 4.Finding the Sweet Spot: Farmers aim for the point where adding more input stil significantly increases output (optimal level) 5.Beyond Optimal: Adding even more input might even harm production due to issues like nutrient overload, 3 Producing Products with the Best Quality and Processing Process Page 16 of 21Divisions of Econimcs 1.Microeconomics : Focuses on individual decision-making units like consumers, firms, and markets. It analyzes how these units allocate scarce resources, considering factors like * Prices + Supply and demand * Production costs * Consumer behavior ‘2Macroeconomics : large-scale factors like: Jeals with the economy as a whole, looking at * Inflation + Unemployment + Economic growth * Government policies + International trade Producing Products with the Best Quality and Processing Process Page 17 of 21Defination of Econimcs Here's the definition of economics in: 41. Economics is the social science that studies how individuals, societies, and governments make choices under conditions of scarcity. 2.It analyzes how resources are allocated, produced, distributed, and consumed. 3. This includes studying factors like prices, markets, supply and demand, and human behavior. 4.The goal of economics is to understand how economies function and. to develop policies that promote efficiency, growth, and stability. Producing Products with the Best Quality and Processing Process Page 18 of 21Basic Concept : Goods and Service + Goods: Tangible: These are physical objects you can touch and hold, like a shirt, a phone, or a bag of apples. © Ownership transfer: When you buy a good, you become the owner and can resell or discard it. Examples: Clothes, electronics, furniture, groceries. + Services: © Intangible: These are actions performed for you, experiences you have, or expertise you utilize. You can't hold a service in your hand. © No ownership transfer: You pay to access a service, but you don't ‘own it. Think of a haircut, a concert, or a doctor's visit. © Examples: Haircuts, education, healthcare, transportation, entertainment. Producing Products with the Best Quality and Processing Process Page 19 of 21Region of Produnction : Divison Econimcs ‘+ Cost Considerations: Businesses consider factors like labor costs, land availability, and infrastructure when choosing a production location. Lower costs in a particular region can improve profit margins. ‘+ Market Access: Proximity to target markets reduces transportation costs and delivery times. Being closer to consumers can give businesses a competitive edge. + Government Policies: Tax incentives, regulations, and trade agreements in a specific region can influence production decisions. Favorable policies can attract businesses. + Resource Availability: Access to raw materials, labor with specific skills, or natural resources needed for production can influence location choices. + Risk Diversification: Companies might spread production across regions to mitigate risks like natural disasters or political instability. Producing Products with the Best Quality and Processing Process Page 20 of 21Thank You Part of the Agricultural Production Industrial Complex Producing Products with the Best Quality and Processing Process Page 21 of 21