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Diversification and its Determinants: A Search for Alternative Income and Agricultural Development in Eastern India

Author

Listed:
  • Ahmad, Nasim
  • Singh, KM
  • Sinha, DK

Abstract

The eastern region of India, comprising the states of Bihar, Jharkhand, Assam, Odisha and West Bengal, is one of the most backward regions of the nation. This region occupies about 21.85% of geographical area and supports 34% of the population of the country. Agriculture is the mainstay of economy in the region. About 67% of the cultivators belong to marginal group and over 75% of their earnings are utilized to ensure their food security. Issues related to diversification have been discussed by researchers for a long period and they have been trying to relate diversification to the developmental prospects and various factors responsible for it. Despite this, the eastern region has rich natural resources i.e. fertile land, abundant ground water (145.12 BCM), however, the pace of agricultural development is very slow. In the present study, an attempt has been made to measure diversification using Herfindahl-Hirschman index, known as the most popular method, it was used to measure extent of diversification. The regression model was applied to access the determinants of crop diversification in the region. The study is based on secondary data collected from various published sources from 2001-02 to 2014-15 i.e. for a period of 14 years. The results revealed that in the region, the diversification for the study period was observed very low in almost all the states under study and for the eastern region as a whole. The study pinpointed the fact that despite the rich natural resources, its potential could not be harnessed from the point of view of improving agricultural productivity, poverty alleviation and livelihood improvement. Strengthening of crop diversification depends on market and taking care of production risks through technological support, quality input supply, more insurance coverage and establishment of modern storage-processing centres in the region. Keeping in view the rich natural resources and hidden agricultural development opportunities in the region, government has already taken initiative for Second Green Revolution from the region, however a strong policy push up towards instilling confidence among the farming community is needed in this direction.

Suggested Citation

  • Ahmad, Nasim & Singh, KM & Sinha, DK, 2019. "Diversification and its Determinants: A Search for Alternative Income and Agricultural Development in Eastern India," MPRA Paper 98118, University Library of Munich, Germany, revised Dec 2019.
    • Handle: RePEc:pra:mprapa:98118
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    References listed on IDEAS

    as
    1. Singh, R.K.P. & Singh, K.M. & Kumar, Abhay, 2014. "A Study on Adoption of Modern Agricultural Technologies at Farm Level in Bihar," MPRA Paper 73831, University Library of Munich, Germany, revised 23 Mar 2014.
    2. Singh, K.M. & Singh, R.K.P. & Kumar, Abhay & Kumar, Anjani, 2014. "Adoption of Modern Agricultural Technologies: A Micro Analysis at Farm Level in Bihar," MPRA Paper 59674, University Library of Munich, Germany, revised 15 Oct 2014.
    3. Sinha, D.K. & Ahmad, Nasim & Singh, K.M., 2016. "Shrinking Net Sown Area: An Analysis of Changing Land Use Pattern in Bihar," MPRA Paper 76460, University Library of Munich, Germany, revised 23 Nov 2016.
    4. M S MEENA & Krishna SINGH, 2013. "Information And Communications Technologies For Natural Resource Management," Journal of Advanced Research in Management, ASERS Publishing, vol. 4(2), pages 77-90.
    5. Kumar, Anjani & Kumar, Pramod & Sharma, Alakh N., 2012. "Crop Diversification in Eastern India: Status and Determinants," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 67(4), pages 1-17.
    6. repec:srs:journl:jemt:v:4:y:2013:i:2:p:77-90 is not listed on IDEAS
    7. Meena, M.S.. & Singh, K.M., 2012. "Information and Communication Technologies for Sustainable Natural Resource Management," MPRA Paper 45818, University Library of Munich, Germany, revised 04 Apr 2013.
    Full references (including those not matched with items on IDEAS)

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    JEL classification:

    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • Q1 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Agriculture

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