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Abstract
The paper seeks to find out the extent of diversification of livelihood options, types of options adopted by agricultural households, effect of choosing different combinations of livelihood options on average household income, consumption expenditure and the incidence of poverty and the factors that determine the probability of choosing different combinations of livelihood options. The results show that in most of the states a majority of the households adopt two or even more livelihood options and that those households who adopt non-farm business as one of the livelihood options have significantly higher average income, consumption expenditure and low incidence of poverty. The results of multinomial logit model show that household size, age, education and gender of the head of the family, number of adults and dependents in the family, social group and land category of a household, access to technical advice, per capita income and the state/union territories to which a household belongs to are significant factors affecting the probability of a household choosing different combinations of livelihood options in relation to cultivation. The unequivocal message of the study is that promotion of non-farm business as one of the options along with cultivation holds the key to enhance farmers’ income and pull them out of poverty.