Upsc impact of globalization on agricultural sector
Answers
Positives of globalisation on agriculture:
Mechanisation
New technology for seed development- Green Revolution, GM crops
New technology for water conservation, irrigation development- Iran , Israel techniques, Drip irrigation
Export promotion due to new markets
New technologies like e-commerce for product promotion e.g.- tea brands, coffee, tobacco
New avenues like Multi-brand Retail players- Walmart, Carlfour etc.
Backward industries such as tractor, fertiliser, farm machines investment e.g. John deer
Food processing industries, Mega food parks with help of foreign technology and investment
Agriculture infrastructure- warehouses etc. also developed
Geographical indexing have improved demand for such commodities in international markets and this have positive effect on farmers income.
Research collaboration with foreign countries and institutions has increased.
Globalisation has encouraged the concrete of corporate and contract farming which have helped farmers.
Proliferation of food processing industries has improved farmers returns.
Negatives of globalisation of agriculture:
Competition from global brands due to opening of sector
Forum like WTO pressurizing to tone down security net for agriculture sector
Input cost for agriculture is also effected by global events. Tension in Eurasian region can cause fluctuation in price of P fertilizers.
Prices in global markets able to impact local prices e.g.- sugar industry
GM crops issues
Patenting of local products by multinational brands e.g.- Jamun, Neem, Turmeric