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Diversification of Indian Agriculture: Composition, Determinants and Trade Implications


  • Singh, N.P.
  • Kumar, Ranjit
  • Singh, R.P.


The pattern of diversification across states/crops in India has been schematized and various determinants of diversification have been deciphered. To objectively confer the empirical resonance, values of Simpson index have been estimated. The diversification index (SID) has been found to range from 0.47 (WB) to 0.90 (Karnataka) in 1990-91 and from 0.40 (Orissa) to 0.92 (Karnataka) in 2000-01. The increase in diversification Index signifies shift towards non-foodgrain crops. In Karnataka, though the Index has increased, but the similar increases in area under foodgrain imply shift from coarse to fine cereals. Agricultural diversification is influenced by a number of infrastructural and technological factors. The coefficients have indicated that the presence of electricity and road density are negatively associated with the diversification. In the year 2001-02, large share of export earnings has come from non-traditional items, namely rice, fruits, vegetables, livestock and marine products, signifying positive boost to diversification. Indian agriculture has witnessed diversification with impressive improvements in the shares of livestock and fisheries sectors in the total income from agriculture. Within the crop sector, the diversification has largely been in favour of non-foodgrains crops in most of the states. However, diversification in these states has not been essentially for income generation, but also for the risk-mitigating proposition. However, harnessing the potential of diversification presupposes gradual restructuring of diversification hindering market institutions, infrastructure and quality standards.

Suggested Citation

  • Singh, N.P. & Kumar, Ranjit & Singh, R.P., 2006. "Diversification of Indian Agriculture: Composition, Determinants and Trade Implications," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 19(Conferenc).
  • Handle: RePEc:ags:aerrae:57775
    DOI: 10.22004/ag.econ.57775

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    References listed on IDEAS

    1. Satyasai, K.J.S. & Viswanathan, K.U., 1996. "Diversification in Indian Agriculture and Food Security," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 51(4), December.
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    Cited by:

    1. Khatun, Dilruba & Roy, B.C., 2012. "Rural Livelihood Diversification in West Bengal: Determinants and Constraints," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 25(1), June.
    2. Sichoongwe, Kiru, 2014. "Determinants and Extent of Crop Diversification Among Smallholder Farmers in Southern Zambia," Research Theses 243456, Collaborative Masters Program in Agricultural and Applied Economics.
    3. Mourao, Paulo Reis, 2018. "What is China seeking from Africa? An analysis of the economic and political determinants of Chinese Outward Foreign Direct Investment based on Stochastic Frontier Models," China Economic Review, Elsevier, vol. 48(C), pages 258-268.
    4. repec:ags:cmpart:198521 is not listed on IDEAS
    5. Sen, Biswajit & Venkatesh, P. & Jha, Girish K. & Singh, D.R. & Suresh A., 2017. "Agricultural Diversification and its Impact on Farm Income: A Case Study of Bihar," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 30(Conferenc).

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