Read the passage and answer the following questions given below:

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 Pepsi Co.) 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.

The system described in the passage is possible due to which process?

Globalisation

The correct answer is option 1: Globalisation

While contract farming is the mechanism being described, the broader process that enables and drives it is globalisation, as stated explicitly in the opening line: "These are indicators of the process of globalisation of agriculture..."

The passage describes how agriculture is being incorporated into the global market, with multinational companies entering into contract farming arrangements with local farmers in regions like Punjab and Karnataka. This transformation is a direct result of globalisation, which refers to the increasing integration of economies, markets, and production processes across national boundaries.