Read the following passage carefully:
To mitigate urban micronutrient malnutrition while addressing regional groundwater depletion, several state governments have proposed incorporating drought-resistant millets into urban public distribution systems through guaranteed municipal procurement. Proponents argue that establishing stable public demand will raise farm-gate prices for coarse cereals, thereby incentivizing smallholder farmers in rain-fed zones to transition away from water-intensive paddy and wheat monocultures. They further maintain that this shift will enhance regional ecological resilience without escalating net state welfare expenditure. However, agrarian policy analysts note that raw millets require specialized primary processing to become shelf-stable and marketable. Without state-subsidized localized processing infrastructure, high post-harvest processing costs and transport losses will absorb the price premium offered by public procurement, ultimately preventing farmers from sustaining millet production.
Based on the passage above, evaluate whether the following statement functions as a necessary underlying assumption of the proponents' policy argument:
Statement: The claim that guaranteed public procurement will induce smallholder farmers to shift away from water-intensive monocultures assumes that the financial returns from higher farm-gate prices will not be entirely offset by post-harvest processing and transport costs.
Answer: Answer