GLOBALISATION AND INDIAN SOCIETY – CHANGES IN AGRARIAN
SECTOR DUE TO GLOBALISATION
Agriculture is the backbone of Indian economy. It provides
employment to about 70% of the population. Agriculture contributes about 29% of
gross domestic production (GDP). It provides raw materials for the agro-based
industries like cotton textile, sugar, jute, oilseeds etc., which contribute to
about 20% of the exports from India. Thus, it is important to develop
agriculture in order to develop rural economy and to increase purchasing power
of the rural people.
IMPACT OF GLOBALIZATION ON AGRICULTURE
New Economic Policy and New Agricultural Policy
Liberalization, privatization and globalization pressurized
the government to adopt the New Economic Policy (NEP) and the New Agricultural
Policy (NAP) in 2000.
Objectives:
- 4% growth rate per annum in the next 20 years
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Favor private participation through contract
farming and land leasing
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Supported Genetically Modified (GM) food crops
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Priority to agricultural research
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Production of micro credit and cooperative
enterprises
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Land reforms, consolidation of land holdings,
redistribution of surplus land, private land given on lease for cultivation.
Globalization provide opportunities and threats.
Opportunities
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Knowledge and information for production of
agricultural goods and services.
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Export agricultural produce – crops like
mangoes, tea, jute, etc., exported
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Medicinal plants also in demand for export
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Increase income from farming – globalization
created awareness of opportunities and alternatives for farmers to enhance
their income by switching from subsistence farming to cash crop farming.
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Technological gap bridged by setting up of green
houses which enhanced crop growth
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Setting up of Food Processing Cottage Industries
as well as big industrial houses would increase profitability through exports.
E.g. Mango pulp
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Fresh produce retailing through supermarkets,
departmental stores and malls with an integrated supply chain back to the farm
is becoming popular.
Threats
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Uncertainty and competitiveness
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Need for adaptation to change and timely
adoption and absorption of technology
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Poor and illiterate rural and small town with
low income affected as they did not have access to technological development
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This forced them to rethink their occupation
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Land reforms – there has been land alienation in
rural poor farming communities. State governments lobby for industries which
are given subsidies and tax concessions. The states acquire lands owned by
farmers forcibly under ‘Land Acquisition Act’ give farmers a nominal
compensation thus snatching away their only source of livelihood.
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Polluting rural environment – shifting
industries from urban to rural areas lead to environmental pollution.
Industries dump untreated waste into the surroundings thus polluting water,
land and air in the rural areas
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Diluted land ceiling legislation – land ceiling
legislation is in favor of industry. Corporate companies raise capital in the
name of plantations like ‘Green Earth’ and acquire huge tracts of agricultural
land and use it for industrial purposes.
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Change in cropping patterns – water intensive
crops like sugar cane are displacing vital food crops. Agriculture is now
focused towards export markets and is ignoring local markets.
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Ecological crisis – food markets cater to the
upper middle class. The poor have to satisfy themselves with inflation, high
food prices, and low food quality. Increase in use of chemical fertilizers,
pesticides, HYV (High Yield Variety) seeds, is affecting the ground water
levels as well as the ecology of the rural areas.
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Loss of biodiversity – tribal lands are
exploited by industries thus depleting biodiversity. Plantation of commercially
profitable trees like eucalyptus, teak, etc., destroy the bio diversity and
this affects Adivasis who depend on the forest for fuel, medicinal herbs, food
and livelihood.
Other factors
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Investment and subsidies – The government must
ensure subsidies in order to promote agriculture. Government and public
investments in agriculture. There is an urgent need for investment in
infrastructure like irrigation, research and marketing, storage facilities,
etc.
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Danger to food sufficiency at national level –
India has a large population with low purchasing power. Big farmers export
their produce at high prices rather than selling in local markets at lower
prices. To avoid this situation the government must keep trade of agricultural
commodities under its control.
- Application of TRIP and Agriculture in India –
TRIP (Trade Related Intellectual Property Rights) of WTO to Agriculture,
patenting for seed and plants. Patenting transfers all benefits to the MNCs
from developing countries. The Agricultural department (Government of India)
should provide incentives to Indian scientists to develop patents for as many
plants through research in agricultural universities.