Globalisation and its impact on agriculture

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GLOBALIZATION

The objective of the WTO is to create a single geographic market that is worldwide in scope, with a single set of trading rules that are worldwide in application. Globalization doesnot mean just 'global free market'. According to Webster's dictionary "globalize," means "to make worldwide in its scope or application." Every nation has the right to maintain those aspects of its local and national economies that it feels necessary to protect its resources and its people from exploitation. In a truly "global free market," the social and political boundaries that now protect nations from such economic exploitation no longer exist.

GLOBALIZATION AND AGRICULTURE

Globalization has a significant influence on agriculture and the food supply that favored economies of scale at the international level.

In a global agricultural economy, small farms will be replaced by large farms, which in turn will be controlled by giant multinational corporations. Small farmers quite simply will not be able to compete in a "free market" global economy. Many small farmers of the world rely on horticultural crops for their viability. Thus, the implications of globalization may be even more dramatic for horticulture than for most other agricultural sectors. But even more important, ecological and cultural boundaries are essential to the long run sustainability of agriculture. Thus, if all economic boundaries are removed, human life on earth will not be sustainable.

GLOBALISATION OF INDIAN AGRICULTURE BOON OR BANE?

The WTO agreements curtail the power of developing countries like India to frame people-oriented policies in fundamental areas such as investment, services, social welfare, medicines and agriculture. Exporting agricultural produce from India is extremely difficult.

The massive subsidies given to domestic farmers in industrialized countries generate over-production. The resulting surpluses are dumped in world markets with the help of more subsidies. These highly subsidized exports from rich countries drive down the prices for exports from developing countries, devastating the prospects of small and poor farm families. For example prices of tea have remained depressed and continue to remain well below peak levels recorded in 18. Lower prices have resulted in lowered value of tea exports from India. Prices of coffee have also fallen by 70% since 17; costing developing country exports about $8 billion in lost foreign exchange earnings.

Trade liberalization and the globalization of agriculture are supposed to increase the production of food and improve the economic situation of farmers across the world. However, in country after country the process is leading to a decline in food production and productivity, a decline in conditions for farmers and a decline in food security for consumers. Globalization is deepening food insecurity over the world.

The Indian agricultural sector is too vital to the country's economy. It is the largest sector in terms of output and employment. More than 5% of the GDP comes from agriculture and over 65% of the working population depends on agriculture and allied industries. Over the years, our farmers, diligently and tirelessly, built a strong foundation for agricultural development. From a net importer of agricultural products, the country went on to becoming, first, self-reliant and then an exporter of food products. Agriculture became the mainstay of Indian economy. It helped the nation tide over serious economic crises. But now the WTO agreements in general has dealt a very severe blow not only to Indian agriculture and the food security of the nation but also to the rights of farm families, indigenous communities and the rural poor, and our genetic resources and traditional knowledge.

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