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.
Out of the following, which is not a demerit of contract farming?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Provides financial security to the farmer
Option (1) Provides financial security to the farmer — Not a demerit (Correct). The farmer is assured of a market, because the company guarantees that it will buy the produce at a predetermined fixed price. This is why contract farming appears to provide financial security, a merit of the system, even though the passage adds that the farmer can later become insecure by depending on the company.
Option (2) Indigenous knowledge becomes irrelevant regarding agriculture — A demerit (Incorrect). The company decides the crop and supplies the know-how, so contract farming disengages many people from the production process and makes their own indigenous knowledge of agriculture irrelevant.
Option (3) Ecologically not sustainable — A demerit (Incorrect). Contract farming usually requires high doses of fertilisers and pesticides, which harm the soil and water over time, so it is often not ecologically sustainable.
Option (4) Does not produce for the masses — A demerit (Incorrect). Contract farming caters primarily to the production of elite items such as cut flowers and gherkins for export, and it diverts land away from the food grains that ordinary people eat.
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. 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.…” |