Liberalization, Globalization and Their Impact on Agriculture
by The local markets cannot absorb all the produce and the excess produce maybe exported. Mostly, only the crops enjoying the subsidy are produced.
The difference between agriculture and industry is that in industry we can measure our profits, stop or start production, increase or decrease it too. But agriculture depends on the rain and natural conditions. The crop is planted according to the season and has to be harvested at the right time. All the produce comes to the market at the same time the price is determined by the market, not the farmer. Under these circumstances, governments all over the world re forced to subsidies farm products.
Image by The Library of Congress via Flickr
The local markets cannot absorb all the produce and the excess produce maybe exported. Mostly, only the crops enjoying the subsidy are produced. The entry o the imported subsidized products cause the prices of the local products to fall in the countries that important. Thus, every nation tries to help its farmers through subsides. The importing nation tries to protect its farmers through taxes on the exporters. As a result, agriculture is under severe pressure. If the farmers are not vigilant, they may face unimaginable losses. The arrival of genetically modified seeds and synthetic chemical fertilizers and insecticides has further made the farmer dependent on the market. In such circumstance, small farmers may eventually be reduced to farm laborers, or contract farmers. 
Image by Agcatman via Flickr
The multinational companies operating from outside the country are processing food grains and adding value to them. For this, they have introduced suitable modern packing and transport for their products. This development may help the farmer to some extent. But important of food product creates a danger of changing food habits of the people. It may even alter a part of the culture, as in any nation, cooking traditions and food habits are a result of the natural climate condition and the crops grown locally.
Globalization has eroded the cultures of nations and has made farmers’ lives difficult. To meet the growing competition, farmers have begun to buy expensive seeds, synthetic chemical fertilizers, insecticides, and are using large quantity of water. Even now, 43% of the country is under agriculture and 64% of the people depend on it.
Agriculture contributes to about 18% of our country’s exports.
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