Question

Write a note on the impact of globalization on Indian agriculture.

Hint:

While globalization has benefited Indian agriculture by providing new market opportunities and technological advancements, it has also led to challenges like price volatility, environmental degradation, and increased dependence on global markets.

Answer 1

Globalization has had a profound impact on Indian agriculture, bringing both opportunities and challenges. The key impacts are:

1. Market Access:
- Globalization has opened up new international markets for Indian agricultural products. Farmers can now export crops such as rice, wheat, spices, and fruits to other countries. This has helped Indian agriculture grow by providing farmers access to global demand. For example, India's export of basmati rice has increased due to the demand from countries like the USA and Europe.
2. Introduction of New Agricultural Practices:
- With the influence of global agricultural practices, there has been an increase in the use of high-yielding varieties (HYVs) of seeds, modern irrigation systems, and chemical fertilizers. These technologies have led to higher productivity and helped India achieve food security, especially in the post-Green Revolution era.
3. Corporate Farming and Contract Farming:
- With globalization, there has been an increasing shift towards corporate farming and contract farming in India. Companies now contract with farmers for large-scale production, providing them with technology, seeds, and markets. However, this has led to monopolization of the agricultural sector, with large companies gaining control over production and pricing, often to the disadvantage of small farmers.
4. Competition and Price Volatility:
- Global competition has exposed Indian farmers to international market fluctuations. For example, prices of cotton, sugarcane, and oilseeds are often determined by global prices, which can lead to price volatility and income uncertainty for farmers. For instance, the global demand for certain commodities may fall, leading to losses for Indian farmers.
5. Environmental Impact:
- Globalization has also brought environmental concerns to the forefront. The increased use of chemical inputs like fertilizers and pesticides has led to soil degradation, water pollution, and loss of biodiversity. The push for monoculture farming, such as the extensive cultivation of genetically modified (GM) crops, has reduced the variety of crops grown, further affecting biodiversity.
6. Dependency on Global Factors:
- Indian agriculture has become more dependent on international factors such as climate change, global commodity prices, and international trade policies. For example, India's reliance on imports for edible oils has increased due to the global market's control over the production of these commodities.