Given below is a statement followed by two possible reasons numbered I and II. Read the statement carefully and decide which of the two explain(s) the event/observation/information given in the statement. Statement: Reasons:
Price of tomatoes has been steadily rising in the last two weeks and has crossed ₹200 per kg in most parts of the country.
(I) Farmers have reported a new unknown insect infestation in tomato crops, which has affected the crop output of tomatoes in many states across the country.
(II) Heavy flooding in many states during the monsoon season has destroyed many standing vegetable crops, leading to shortages in supplies.
Both I and II are possible reasons.
Analyzing the Reasons for Rising Tomato Prices
The statement highlights a significant increase in tomato prices, crossing a notable threshold of ₹200 per kg across the country over the past two weeks. We need to evaluate if the provided reasons (I and II) could plausibly explain this observation.
Reason I: Insect Infestation Impact
Reason (I) suggests that a new, unknown insect infestation has negatively impacted tomato crop output in several states. This situation directly affects the supply of tomatoes.
- Effect on Crop Yield: Insect infestations damage crops, reducing the amount of produce farmers can harvest.
- Effect on Supply: A lower crop output means fewer tomatoes are available in the market.
- Effect on Price: Basic economic principles state that when supply decreases while demand remains relatively stable, prices tend to increase. Therefore, a widespread insect infestation affecting crop output is a valid reason for the observed rise in tomato prices.
Reason II: Flood Damage Impact
Reason (II) points to heavy flooding during the monsoon season destroying standing vegetable crops, leading to supply shortages. Similar to Reason I, this directly impacts the availability of produce.
- Effect on Crop Yield: Flooding can completely destroy standing crops, rendering them unusable and unharvestable.
- Effect on Supply: The destruction of crops, including tomatoes, leads to a significant reduction in the overall supply available in the market.
- Effect on Price: A substantial decrease in supply, caused by widespread crop destruction due to floods, would naturally lead to higher market prices, especially if demand persists. This makes Reason II also a plausible explanation for the escalating tomato prices.
Conclusion: Validating Both Reasons
Both Reason I and Reason II describe scenarios that directly lead to a reduction in the supply of tomatoes. Reduced agricultural output, whether due to pests or natural disasters like floods, is a primary driver of price increases in commodity markets.
- Reason I explains the price rise through reduced crop output due to pest problems.
- Reason II explains the price rise through destroyed crops leading to shortages in supplies due to floods.
Since both events logically contribute to lower supply and consequently higher prices, it is reasonable to conclude that Both I and II are possible reasons for the steady rise in tomato prices to over ₹200 per kg.
| Factor | Impact on Supply | Potential Effect on Price |
| Reason I: Insect Infestation | Decreased crop output | Increased Price |
| Reason II: Heavy Flooding | Destroyed crops, Shortage | Increased Price |
Similar Questions
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Important Questions from Cause and Effect
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