GLOBALIZATION AND INDIAN AGRICULTURE

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

-          Favor private participation through contract farming and land leasing

-          Supported Genetically Modified (GM) food crops

-          Priority to agricultural research

-          Production of micro credit and cooperative enterprises

-          Land reforms, consolidation of land holdings, redistribution of surplus land, private land given on lease for cultivation.

Globalization provide opportunities and threats.

Opportunities

-          Knowledge and information for production of agricultural goods and services.

-          Export agricultural produce – crops like mangoes, tea, jute, etc., exported

-          Medicinal plants also in demand for export

-          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.

-          Technological gap bridged by setting up of green houses which enhanced crop growth

-          Setting up of Food Processing Cottage Industries as well as big industrial houses would increase profitability through exports. E.g. Mango pulp

-          Fresh produce retailing through supermarkets, departmental stores and malls with an integrated supply chain back to the farm is becoming popular.

Threats

-          Uncertainty and competitiveness

-          Need for adaptation to change and timely adoption and absorption of technology

-          Poor and illiterate rural and small town with low income affected as they did not have access to technological development

-          This forced them to rethink their occupation

-          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.

-          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

-          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.

-          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.

-          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.

-          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

-          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.

-          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.