Read the passage and answer the 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.
Contract farming happens for:
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Cash crops only
Note: The given answer is as per the official NTA Answer Key. However, Option (3) can also be considered correct, as explained below.
Option (1) Cash crops only — Correct as per NTA. Cash crops are crops grown for sale in the market, not for the farmer’s own food. Every crop the passage names is of this kind: tomatoes and potatoes bought by the company for processing or export, cut flowers, grapes, figs and pomegranates, cotton, oilseeds and gherkins. Contract farming even diverts agricultural land away from food grain production.
Option (2) Food crops only — Incorrect. Food crops such as food grains are grown to feed people. Contract farming works the other way: the crops grown under contract are specialised items for the market, and contract farming of export-oriented products such as flowers and gherkins means that agricultural land is diverted away from food grain production.
Option (3) Oil seeds and cotton — Can also be considered correct. The passage names cotton and oilseeds among the crops for which contract farming is very common, so the option is true of contract farming as far as it goes. But they are only two of the many crops the passage names. Flowers, fruits, tomatoes, potatoes and gherkins are grown under contract too, and every one of them is a cash crop, so Option (1), which covers them all, is the most appropriate answer.
Option (4) Food processing industry — Incorrect. The company buys the produce for processing or export, so processing is only one of its two uses. Cut flowers and cotton are not food at all, so contract farming is not limited to the food processing industry.
NCERT (2025-26): “4.6 Globalisation, Liberalisation, 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 crop to be grown, provides the seeds and other inputs, as well as the know-how 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 oilseeds. 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 away from food grain production.…” |