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Agrarian Crisis in India : an Outcome of Globalization

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Agrarian Crisis in India : an Outcome of Globalization
Agrarian Crisis in India : An Outcome of Globalization : Dr. Shashi Sanchiher (Lecturer, Economics) Dr. Monika Dave (Lecturer, Economics) Govt. Meera Girls College, Udaipur

A decade after the inception of economic liberalization, instead of experiencing an unprecedented boom in the growth, the agriculture sector in India is facing some serious crisis. During the period of reforms there has been a steady deceleration in the growth rate of agriculture output as compared with the decade before reforms. Again one of the very disturbing features of the growth pattern in the post globalization period is very low employment generating potential of growth in the secondary & tertiary sector. This has resulted in increasing concentration of work force in agriculture where in contrast agricultures contribution to GDP has been declining considerably.

The food production has been undermined by trade liberalization policies. Food growing land is being diverted to non food crops. Farmers are being displaced on a massive scale and natural resources are being overexploited. Corporatisation of agriculture which is being pushed under trade liberalization as a successor of green revolution is leading to new poverty for small farmers.

Investment in agriculture has remained stuck up at around 1.3 % of GDP since long. With more than half of the population directly depending on this sector, low agriculture growth has serious implications for the inclusiveness of growth. The process of Globalization instead of benefiting the farmers, is compounding their apprehensions & insecurity. Nearly one lakh Indian farmers have committed suicide during 1993-2003. Rural unemployment is increasingly making the rural youth desperate.

The present paper is an attempt to analyse agricultural performance in the pre & post reform period, the work force convergence in the Indian Agriculture in reform period, the challenges of globalization for Indian agriculture & draws some policy implications for the future of Indian Agriculture. The article as a whole analyses how the policy of globalization has affected agriculture in India.

Having realized that globalization is a necessary but not a sufficient condition for high growth production, India has undertaken economic reforms. However it must be ensured that these reforms do not undermine the agriculture sector & the pace of reforms is set right in order to work hand in hand to promote agricultural productivity & growth. The side effect of globalization can be minimized if globalization is conditioned by steps to strengthen the supply side factors as irrigation; water shed development, research & credit to augment agricultural production.

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