Which of the following are the indicators of globalisation of agriculture?

(A) Contract farming
(B) Increased dependence of farmers on fertilisers and pesticides
(C) Promotion of indigenous knowledge for agriculture
(D) Entry of multinationals into agricultural sector

Choose the correct answer from the options given below:

(A), (B) and (D) only

The correct answer is Option (2) - (A), (B) and (D) only

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 (A), 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.

Another, and more widespread aspect of the globalisation of agriculture is the entry of multinationals into this sector (C) as sellers of agricultural inputs such as seeds, pesticides and fertilisers. Over the last decade or so, the government has scaled down its agricultural development programmes, and ‘agricultural extension’ agents have been replaced in the villages by agents of seed, fertiliser and pesticide companies. These agents are often the sole source of information for farmers about new seeds or cultivation practices, and of course they have an interest in selling their products. This has led to the increased dependence of farmers on expensive fertilisers and pesticides (B), which has reduced their profits, put many farmers into debt, and also created an ecological crisis in rural areas.