Liberalisation policies initiated in India since the late 1980s have reshaped the agricultural landscape by integrating Indian farmers into the global market. Farmers are now exposed to competition, leading to significant changes such as the prevalence of imported agricultural products and the introduction of contract farming with multinational companies. For example, industries like PepsiCo have entered partnerships with local farmers to cultivate specific crops for processing.
This contract farming can provide farmers with market security through guaranteed prices. However, it often forces a shift away from traditional food production, which raises concerns over food sovereignty and sustainable practices. The transition has also infused insecurity due to reliance on global market trends, which can render farmers vulnerable to fluctuating prices and the requirements of these companies.
Moreover, the increase in inputs like pesticides and hybrid seeds often emphasizes profitability while sidelining ecological concerns, resulting in adverse impacts on local farming conditions. Underlying these economic shifts is a troubling rise in farmer suicides linked to debt and the pressures of maintaining productivity and profitability in an increasingly commercialized agricultural system.