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

Abstract

Crop diversification is an important strategy for overall development of agriculture of the nation, in general and eastern India, in particular, where abundance of rich natural resources is available. The present investigation was an attempt to know the extent of diversification and identify the influencing factors of diversification in this region. The study is based on secondary data from 2001-02 to 2014-15. Herfindahl index was applied to calculate the diversification index and multiple regression analysis was used to examine the factors affecting diversification. The diversification was found less for the region having dominant traditional system of farming. The major factors such as percentage of HYVs area to GCA, average holding size and per capita income could be identified as determinants of crop diversification in eastern region. Strengthening of crop diversification depends on market and mitigation of production risks through technological support, quality input supply, insurance cover and existence of modern storage-processing centers in the region. Keeping in view the rich natural resources and hidden agricultural development opportunities in this region, government is taking initiatives/steps so as to begin Second Green Revolution right from the region through use of huge resource potential to obtain optimum harvest.