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Many questions and controversies are being raised which are confusing majority of the people.

The first fact to understand is that globalization is a stage in the development of the human civilization. It has started basically because of development of information technology (along with internet) and surplus capital being generated in the developed countries because of successful research and innovations.

The second fact is Additional capital can not be invested in the developed countries because the purchasers are in China and India, because of population and purchasing power.

Third fact is that globalization is a stage in the development of human civilization and nobody knows what will be the next stage and for how long the present process will continue.

These are the broader facts. There may additions and more fine tuning in the presentation.

These facts make many things clear. Globalization is not being managed or caused by any country (USA). Nobody, no institution or country can stop it. The only thing wise men can do is to benefit from it.

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Corporate agriculture: The implications for Indian farmers Jayati Ghosh December 2003 I Globalisation has already affected the farm sector in India, as in many other developing countries, in a range of adverse ways. The most evident is the squeeze on farmers' incomes, and the threat to the viability of cultivation, which has come about because of rising input costs and falling output prices. This reflects the combination of reduced subsidy and protection to farmers in developing countries, and trade liberalisation which exposes these farmers to competition from highly subsidised production in the developed world. This combination, along with deflationary policies which have hit rural public expenditure, has created unprecedented agrarian crisis over much of the developing world, including in India. However, until now, the Indian agricultural sector had been relatively spared from the most extravagant excesses of neoliberal interference, in the form of the corporatisation of agriculture. That reprieve now seems to be over, as the central government and several state governments in India are gradually won over by the dubious charms of contract farming. This is increasingly being presented as the great new hope and the way out of the morass in which Indian agriculture now finds itself, and is being actively promoted by major international donor agencies as well as by multinational companies that stand to gain from this process, and has recently been promoted by the central government as well. The Government of India's National Agriculture Policy envisages that "private sector participation will be promoted through contract farming and land leasing arrangements to allow accelerated technology transfer, capital inflow and assured market for crop production, especially of oilseeds, cotton and horticultural crops". The NDA government at the Centre has already drafted a model law on agricultural marketing to provide, among other things, legal support to contract farming agreements. Several state governments, in Andhra pradesh, Gujarat, Karnataka, Punjab and Tamil Nadu, are actively promoting contract farming, changing laws to enable and support it, and providing companies interested in it with a variety of incentives, including lifting of land ceilings, subsidies and tax rebates. Other state governments, including in West Bengal, are under active pressure to change their policy towards contract farming. In this context, it becomes urgent to assess the experience with contract farming both internationally and in the recent Indian context. Contract farming is defined as a system for the production and supply of agricultural or horticultural products under forward contracts between producers/suppliers and buyers. The essence of such an arrangement is the commitment of the cultivator to provide an agricultural commodity of a certain type, at a time and a price, and in the quantity required by a known and committed buyer, typically a large company. According to the contract, the farmer is required to plant the contractor's crop on his land, and to harvest and deliver to the contractor a certain amount of produce, based upon anticipated yield and contracted acreage. This could be at a pre-agreed price.

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