As part of the policy of liberalisation, India participates in the Wo…

The correct answer is Option (1) → Opening up of Indian markets to imports

Option (1) Opening up of Indian markets to imports — Correct. The World Trade Organization aims at a freer international trading system. Joining it requires India to open its markets to imports, so farmers now face competition from the global market.

Option (2) Contract farming of crops with multinational companies — Incorrect. Contract farming is a private deal in which a multinational company buys a farmer's crop at a fixed price. It is a sign of the globalisation of agriculture, and WTO membership does not require it.

Option (3) Scaling down of agricultural extension programmes — Incorrect. Extension programmes are farm advice services run inside the country. The WTO deals with trade between countries, and its demand on India concerns letting imports in.

Option (4) Shift from food grains to export-oriented cash crops — Incorrect. Growing export crops in place of food grains is an effect of contract farming in some regions. It is a choice made under company contracts, and WTO participation does not demand it.