In the case of farm products in India, what is generally observed about the income elasticity of demand for these agricultural goods?

Introduction / Context:
Income elasticity of demand measures how the quantity demanded of a good responds to a change in consumer income. For some goods, demand rises sharply with income, while for others, demand changes very little as incomes grow. Farm products, particularly basic food grains, have special behaviour because there is a biological and practical limit to how much food a person can consume. This question asks about the income elasticity of demand for farm products in India, which is a standard topic in agricultural economics.

Given Data / Assumptions:
We are focusing on farm products, especially basic agricultural goods such as cereals and staple foods.The options include high income elasticity, no demand, very low elasticity, and a phrase about high supply and no demand.We assume normal conditions where population is growing and incomes are rising gradually.Income elasticity of demand is understood as percentage change in quantity demanded divided by percentage change in income.

Concept / Approach:
Basic farm products such as rice, wheat, and other staples are necessity goods. As income increases, people may slightly improve the quality or variety of foods they consume, but total quantity does not increase proportionally. After basic calorie needs are met, additional income is more likely to be spent on non food items or higher value goods like services, durable goods, and luxury items. Therefore, the income elasticity of demand for staple farm products is relatively low. In India, where many households already consume near their biological needs, the elasticity is particularly low once a certain income threshold is crossed.

Step-by-Step Solution:
Step 1: Recall the definition of income elasticity of demand as the responsiveness of quantity demanded to changes in income.Step 2: Consider how consumption of basic farm products changes when people become richer. Total calories may not increase very much because of health and biological limits.Step 3: Recognise that people may switch toward better quality foods, fruits, and processed items, but the demand for staple farm products does not rise in proportion to income.Step 4: Conclude that the income elasticity of demand for such agricultural products is low.Step 5: Among the options, very low in India accurately reflects this reality.

Verification / Alternative check:
Empirical studies and textbooks in agricultural economics repeatedly highlight that demand for staple food grains shows low income elasticity, especially beyond subsistence levels. In India, as incomes rise, households spend an increasing share on education, healthcare, housing, transport, and consumer durables, rather than dramatically increasing their consumption of cereals. This pattern confirms that the income elasticity of demand for farm products is very low, not high, and certainly not zero as the incorrect options might suggest.

Why Other Options Are Wrong:
High in India: This would mean demand for farm products rises sharply as incomes grow, which is not realistic for staple goods because consumption is already near biological limits.No demand at all: There is clearly demand for farm products, because food is essential, so this option is nonsensical.High supply and no demand: This is a description of a possible market imbalance, not of income elasticity of demand, and does not answer the question.

Common Pitfalls:
Students sometimes assume that because food is essential and many people are poor, demand for farm products must rise steeply with income. They overlook the fact that once calorie needs are reasonably met, additional spending shifts towards non food items. Another pitfall is confusing price elasticity and income elasticity. Price elasticity describes how demand responds to price changes, while income elasticity, discussed here, deals with income changes. Keeping these concepts separate helps to answer such questions correctly.

Final Answer:
The income elasticity of demand for farm products in India is generally very low.