8.44         ndian       onom
       (iv) Weaker Sections: The benefits of                                   (a) According to the agricultural
              globalisation may not be neutral to areas,                            provisions, the total subsidies
              crops and the people. There will never                                forwarded by the government to the
              prevail a certainty as to which area/region                           sector must not cross 10 per cent of
              or crops or the people are going to benefit                           the total agricultural outputs. At the
              from globalisation in which year. At the                              same time, exemptions to farmers
              same time globalisation is a process where                            are to be withdrawn—hampering
              profits can be made, but it is a market-                              the public distribution system badly.
              based concept. Those who are unable to                                India’s subsidies are still far below this
              produce due to lack of capital, investment                            limit, but commitments pose a threat
              and entrepreneurship will have no gains                               to the sovereign decision making.
              from it. They will be net consumers or
                                                                               (b) The subsidies (with different names)
              buyers. Since India has a vast population
                                                                                    to agriculture which are forwarded
              of the weaker sections (as other third
                                                                                    by the developed countries are highly
              world countries have) this population
                                                                                    detrimental to Indian agriculture and
              will neither be able to increase its income
              nor be able to purchase the agri-goods                                they are very high, too.63
              having no price stability.                                 None of the above-given challenges are easy
                          It means that the weaker sections         to fight. These are not to be fought by India alone,
              of India might miss this chance of growth             but almost all developing countries are to face
              and development. We need to make                      it. Once the WTO comes into operation, many
              the benefits of globalisation reach these             experts from India and abroad have provided ways
              people, too. This could be done by a                  to fight these challenges, which may be summed
              timely and society-orientied public policy            up in the following way—
              which is a big challenge.62                                 (i) To fight the challenges related to self-
        (v) WTO Commitments: There are certain                                 sufficiency in food, the price stability
              time-bound obligatory commitments                                and the cropping pattern a judicious
              of India towards the provisions of the                           mix of suitable kind of agricultural and
              WTO in the area of agriculture, which                            trade policies will be the need of the
              are highly detrimental to the people and                         hour. To the extent agricultural policy
              the economy. We may see this challenge                           is concerned, India has a limited level of
              from two angles—                                                 freedom. But the WTO regime does not
                                                                               allow the member countries to impose
      62.  The primary examples of corporate and contract farming
           have given enough hints that economically weaker                    higher tarrif or tarrif itself to ward off
           sections of society have meagre chances of enefitting               cheaper agri-goods from entering the
           from the globalisation of agriculture—with major                    economy—this is the main reason
           profits going to the corporate houses. aturally, the
           governments (centre and states) will need to come up
                                                                               behind the above challenges. It means it
           with highly effective policies which could take care of             is essential to modify, change or revise the
           the economic interests of the masses.                               provisions of the WTO.
                The policies may focus on areas such as healthcare,
           education, insurance, housing, social security, etc.       63.    Some of the developed economies are still forwarding
           Already the governments have started emphasising the              subsidies to the agricultural areas to the tune of 180–220
           delivery and performance of the social sector but in the          per cent Again, the ustification for such high su sidies
           future, more focused and accountable programmes in the            have een provided y defining agriculture su sidies
           sector will be required.                                          according to their ease—highly blurring and confusing.