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Abstract
The South Asian countries are gradually diversifying with some inter-country
variation in favor of high value commodities, namely fruits, vegetables, livestock and
fisheries. Agricultural diversification is strongly influenced by price policy, infrastructure
development (especially markets and roads), urbanization and technological
improvements. Rainfed areas have benefited more as a result of agricultural
diversification in favor of high value crops by substituting inferior coarse cereals.
Agricultural diversification is also contributing to employment opportunities in
agriculture and increasing exports. The need is to suitably integrate production and
marketing of high value commodities through appropriate institutions. Market reforms in
developing and strengthening desired institutions through required legal changes would
go a long way in boosting agricultural growth, augmenting income of small farm holders
and promoting exports.