Environmental consequences of agricultural commercialization in Asia

Agroindustrialization and agricultural commercialization are both consequen ces of economic growth and urbanization. Commercialization of agricultural systems leads to greater market orientation; progressive substitution out o f non-traded inputs for purchased inputs; and the decline of integrated far ming systems. Agricultural commercialization can have both negative and pos itive impacts on the natural resource base. Higher opportunity cost of labo r increases farmer reliance on herbicides for weed control, primarily for t he staple crops. The use of insecticides and fungicides could also rise, es pecially for high value fruit and vegetable crops. Increased use of agricul tural chemicals could lead to higher environmental and human health risks. On the other hand, global integration and the consequent rationalization of agricultural policies could have significant environmental benefits, espec ially in terms of a reduced rate of salinity build up and ground water depl etion in irrigated environments. The extent to which positive environmental effects manifest themselves depends on both macroeconomic and microeconomi c policy reforms.