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Abstract
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.