Comprehension

Read the passage and answer the following questions:
These are indicators of the process of globalisation of agriculture, or the incorporation of agriculture into the larger global market a process that has had direct effects on farmers and rural society. For instance, in some regions such as Punjab and Karnataka, farmers enter into contracts with multinational companies (such as PepsiCo) to grow certain crops (such as tomatoes and potatoes), which the companies then buy from them for processing or export. In such 'contract farming' systems, the company identifies the crops to be grown, provides the seeds and other inputs, as well as the knowhow and often also the working capital. In return, the farmer is assured of a market because the company guarantees that it will purchase the produce at a predetermined fixed price. Contract farming is very common now in the production of specialised items such as cut flowers, fruits such as grapes, figs and pomegranates, cotton and oil seeds. While contract farming appears to provide financial security to farmers, it can also lead to greater insecurity as farmers become dependent on these companies for their livelihoods. Contract farming of export-oriented products such as flowers and gherkins also means that agricultural land is diverted from food grain production. Contract farming has sociological significance in that it disengages many people from the production process and makes their own indigenous knowledge of agriculture irrelevant. In addition, contract farming caters primarily to the production of elite items, and because it usually requires high doses of fertilisers and pesticides, it is often not ecologically sustainable.

Question: 1

Contract farming happens for:

Updated On: Sep 16, 2024
  • Cash crops only
  • Food crops only
  • Oil seeds and cotton
  • Food processing industry
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The Correct Option is A

Solution and Explanation

The correct option is (A) : Cash crops only
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Question: 2

The change in the nature of relationship between landlords and agricultural workers has been described by the sociologist Jan Brewman as:

Updated On: Sep 16, 2024
  • shift from patronage to exploitation
  • shift from ownership to tenancy
  • withdrawal from subsistence farming
  • withdrawal from agriculture
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The Correct Option is A

Solution and Explanation

The correct option is (A) : shift from patronage to exploitation
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Question: 3

Who decides the crop to be grown under contract farming?

Updated On: Sep 16, 2024
  • Farmer
  • Tenants
  • Labourer
  • Company
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The Correct Option is D

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The correct option is (D) : Company
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Question: 4

Out of the following, which is not a demerit of contract farming?

Updated On: Sep 16, 2024
  • Provides financial security to the farmer
  • Indigenous knowledge becomes irrelevant regarding agriculture
  • Ecologically not sustainable
  • Does not produce for the masses
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The Correct Option is A

Solution and Explanation

The correct option is (A) : Provides financial security to the farmer
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Question: 5

The system described in the passage is possible due to which process?

Updated On: Sep 16, 2024
  • Globalisation
  • Contract farming
  • Trans National Corporation
  • Glocalisation
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The Correct Option is A

Solution and Explanation

The correct option is (A) : Globalisation
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