Globalization opened gates for “greater mobility and faster connectivity”. This new trend brought significant changes in rural and agrarian sectors.
Impact on rural areas–
- Works and employment are being generated.
- Connectivity brought awareness regarding various issues. Modern values are being advocated now.
- Fuelling rural to urban migration. This in turn is increasing inward remittances.
- Bringing up the culture of nuclear families in rural areas.
- caste conscious in rural areas has been declining over past few years due to new economic opportunities. Thus social stratification is being impacted.
Impact on agrarian structures–
- Aiding mechanization of agriculture due to improved productivity
- Reduction of disguised unemployment in agriculture sector by creating new opportunities in other sectors.
- Agricultural extension works are now spreading at faster paces due to new means in connectivity.
- Cropping patterns changed due to advent of Globalisation. Farmers shifted to more commercial crops thus leaving them under vagaries of market for getting food
- Globalisation created markets abroad. Thus increasing farmer’s choices
- More banks, so more formal credit facilities. Saving them from money lenders
- Village as a Self-sustaining unit is destroyed. (because of economic forces too)
Globalization and Indian Village
India opened its economy to the global market during 1990’s heralding the dawn of globalization and liberalization. The policy of liberalization entails India to join WTO, which leads to opening its market to global commodity and removing preferential trading barriers. The agriculture is opened up to the international challenge. The agricultural sector was integrated to the global market directly affecting the rural farmers. The multinational companies got into contract farming with the farmers to produce for processing or export. The MNC provided technical know- how, seeds, fertilizer, credit facilities.
The market for the produce is assured by the companies which benefitted the farmers. Contract farming provides security to the rural farmers. The contract farming is not without its evil: farmers are dependent on MNC’s, mono cropping, use of genetically modified crops, dwindling of traditional knowledge of farming, diversion of land from food crops to cash crops. It may not be ecologically sustainable due to excess use of fertilizer.
The impact of globalization had its impact on social customs and traditions; the westernization of culture has led to erosion of traditional values and customs. The impact of global media has brought about a tectonic shift in the culture and thought process of Indian villages. The globalization process has brought about a aspiration changes in the mind of rural people. The employment is no longer fixed to agricultural sector. The village youth has shifted to various employment avenues armed with education and skill development. The age old traditional customs are question by logical rational outlook.
Alternative Answer
Kerala and Bihar
• In the 80’s the Kerala economy got linked to the UAE economy.
• There was a need for minimal, manual labour (devices) who went from Kerala.
• They came back with a lot of wealth and their economy boomed.
• Keralites depended upon coconuts, fishing, but the new business ventures began adding to economy.
• Agricultural economy was linked to economies from industries.
• Kerala already had a booming fishing industry.
• Regions such as eastern UP and Bihar, where land reforms have not been effective, there has hardly been any noticeable change in the agrarian structure.
Globalisation, Liberalisation & Rural Society
• In late 80’s and 90’s globalisation came to India.
• This led to competition among farmers.
• The organisation in charge for rules and regulations was the WTO, which led rules regarding prices, wages, taxes, aspects of trading, reduction of barriers.
• Indian trades are facing competition. Fruits, vegetables, clothes whole structure of rural area changed.
• A new concept was introduced in rural areas known as ‘contract farming’
Contract Farming
• The MNC’s go to different villages and tell the farmers about their requirements.
• Some products which are popular such as potatoes, tomatoes, flowers, etc.
• The MNC’s gave the’ Indian farmers seeds, fertilizers and the know how as to how they were to be used.
• These products were only produced for the MNC’s either sold, made into sauces, jams, carved food (by being processed).
• The farmer is assured of an income and a profit.
• Very popular in some states (Punjab) and the land is fertile.
Disadvantages:
1. Farmers are growing the items, wanted by that MNC and if there is a crop failure there the farmer has nothing to fall back on.
2. Insecurity among the farmers.
3. Product will not be bought by MNC if product is not up to the mark. Only if it is up to the mark it is good.
4. There is insecurity a%there is total dependence on the MNC.
5. We are moving away from production of grains, rice to producing tomatoes, potatoes.
• Once you grow tomatoes etc you cannot go back to producing grains.
• The knowledge that the traditional farmers have is of no use, as the know how about growing there crops is given by the MNC’S.
• Ecologically the soil gets eroded not very feasible and people are switching to organic farming.
MNC’S as agents:
1. Now MNC’s are providing seeds, fertilizers to the farmers.
Seeds etc are expensive but farmers have to buy them for contract farming.
2. Though the profits are high, the insecurities all is also high.
In case there is a crop failure, they do not have the government to fall back upon.
3. The govt cannot give loans at low interest rates as the MNC’s are induced and they take charge.
Farmers’ Suicide—Small and Marginal
Reasons:
1. The Green Revolution belt, small and marginal farmers wanted to increase productivity by increasing the use of advanced technology including tillers, tractors.
2. Unfortunately there may be a setback due to many reasons which can lead to farmer suicide.
Factors:
1. Withdrawal of subsidies and support price by government from farmers.
2. Now they have to borrow from other sources leading to debt traps. When they are unable to pay the money, at times they commit suicide.
3. Crop failure—Natural or manual failure, drought, heavy rain, pests, insecticides, etc.
4. Totally dependent on the market – when there is a crop failure, they have nothing to fall back on insecurity.
5. Besides production costs, there are other expenditures to be incurred. Education, dowry, medial care etc.