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Day 24 – Q 5.Has globalisation been good for the agrarian economy? Critically examine.

5. Has globalisation been good for the agrarian economy? Critically examine. 

क्या वैश्वीकरण कृषि प्रधान अर्थव्यवस्था के लिए अच्छा रहा है? समालोचनात्मक जांच करें।


With the advent of WTO and increasing emphasis on market based economy as well as free trade, agriculture sector has also been impacted by the wave of Globalization.


Benefits for agrarian economy:

  • Agro-technologies– Availability of hybrid seeds, pesticides, technologies like drip and sprinkler irrigation, genetically modified crops etc. that has improved the productivity and efficiency of farming.
  • Increased production– Introduction of HYV seeds, pesticides and herbicides through green revolution has increased agriculture production tremendously across the globe.
  • Higher earnings– Export oriented farming results in better price realization for the farmers.
  • New employment avenues– Food processing and other agro allied industries have generated employment and reduced pressure on land in developing countries.
  • Feminization of agriculture– Due to male moving out because of increased urban employment through globalization, agriculture is being dominated by females.
  • Social impact– Food security, water management through dry and precision farming etc. have social benefits for farmers.


  • Unstable prices– Lower prices in one part of the world adversely impact the local food prices in an open economy.
  • Debt trap– Commercial agriculture requires increased inputs which further increase the debt burden on farmers. 
  • Migration of labour– With increased urban migration, there is lack of labour for agriculture.
  • Income suppression– Trade agreements forbid most subsidies excepted for agricultural goods. This depresses incomes of those farmers in the developing countries who do not get subsidies.
  • Unsustainable practices– Shift from traditional cropping to market oriented farming that is unsustainable, like growing rice in dry areas of Punjab or Sugarcane in dry regions of Marathwada, has caused havoc to the agrarian sustainability of these regions.


Globalisation thus has mixed impact on agrarian economy. The impacts can however be more positive with a focused approach like Special Safeguard Mechanism in WTO and use of tools like glocalisation where regional considerations are given due importance while adopting global practices.

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