Current Science

Open Access Open Access  Restricted Access Subscription Access

The Impact of Crop Diversification Towards High-Value Crops on Economic Welfare of Agricultural Households in Eastern India


Affiliations
1 ICAR-Indian Agricultural Statistics Research Institute, New Delhi 110 012, India
2 South Asia Office of the International Food Policy Research Institute, New Delhi 110 012, India
 

Eastern India is among the most backward regions of the country with underutilizedagricultural potential. Diversification towards high-value crops can be a promising strategy to enhance farmers’ economic welfare in the region. The present study analyses the major determinants and impact of crop diversification towards high-value crops on farmers’ economic welfare in the region using large farm household-level data and advanced matching estimation methods. The findings reveal that cultivation of high-value crops plays a significant role in enhancing farm income, consumption expenditure and reducing poverty. Growers need to allocate at least 40% area for high-value crops to have significant income enhancement and poverty reduction.

Keywords

Agricultural Households, Diversification, Economic Welfare, High-Value Crops.
User
Notifications
Font Size

  • GoI, Report of the expert group to review the methodology for measurement of poverty. Planning Commission, Government of India, 2014.

  • Joshi, P. K. and Kumar, A., In Transforming Agriculture in Eastern India: Challenges and Opportunities(eds Ramasamy, C. and Ashok, K. R.), Academic Foundation, New Delhi, 2016.

  • Chand, R., Doubling farmers’ income rationale, strategy, pro-spects and action plan. NITI Policy Paper No. 1, GoI, 2017.

  • Joshi, P. K., Laxmi, T. and Birthal, P. S., Diversification and its impact on smallholders: evidence from a study on vegetable production. Agric. Econ. Res. Rev., 2006, 19(2), 219–236.

  • Ryan, J. G. and Spencer, D. C., Future challenges and opportunities for agricultural R&D in the semi-arid tropics. International Crops Research Institute for the Semi-Arid Tropics, Patancheru, 2001.

  • Van den Berg, M., Hengsdijk, H., Wolf, J., Ittersum, M. V., Guanghuo, W. and Roetter, R., The impact of increasing farm size and mechanization on rural income and rice production in Zhejiang Province, China. Agric. Syst., 2007, 94, 841–850.

  • Kahan, D., Managing risk in farming. In Farm Management Extension Guide 3, Food and Agriculture Organization of the United Nations, Rome, Italy, 2008, pp. 29–87.

  • Sharma, H. R., Crop diversification in Himachal Pradesh: patterns, determinants and challenges. Indian J. Agric. Econ., 2011, 66(1), 97–114.

  • Birthal, P. S., Roy, D. and Negi, D. S., Assessing the impact of crop diversification on farm poverty in India. World Dev., 2015, 72, 70–92.

  • Thapa, G., Kumar, A. and Joshi, P. K., Agricultural diversification in Nepal: Status, determinants, and its impact on rural poverty. Discussion Paper 01634, IFPRI – South Asia Office, New Delhi, 2017.

  • Kumar, A., Rural employment diversification in eastern India: trends and determinants. Agric. Econ. Res. Rev., 2009, 22, 47–60.

  • Dasgupta, S. and Bhaumik, S. K., Crop diversification and agricultural growth in West Bengal. Indian J. Agric. Econ., 2014, 69(1), 107–124.

  • Bhatt, B. P. and Mishra, J. S., Prospects of bringing second green revolution in eastern India. In Souvenir of the 4th International Agronomy Congress, 2016, pp. 22–36.

  • Nayak, D. K., Changing cropping pattern, agricultural diversification and productivity in Odisha – a district-wise study. Agric. Econ. Res. Rev., 2016, 29(1), 93–104.

  • National Sample Survey Organization (NSSO), Unit-level data of NSSO. 59th Round Situation Assessment Survey of Farmers, Ministry of Statisticsand Programme Implementation, GoI, 2003.

  • NSSO, Unit-level data of NSSO. 70th Round Situation Assessment Survey of Farmers, Ministry of Statistics and Programme Implementation, GoI, 2013.

  • Ali, A. and Abdulai, A., The adoption of genetically modified cotton and poverty reduction in Pakistan. J. Agric. Econ., 2010, 61(1), 175–192.

  • Heckman, J., Ichimura, H. and Todd, P., Matching as an econometric evaluation estimator: evidence from evaluating a job training programme. Rev. Econ. Stud., 1997, 64, 605–654.

  • Iacus, S., King, G. and Porro, G., Causal inference without balance checking: coarsened exact matching. Pol. Anal., 2001, 1–24.

  • Hirano, K. and Imbens, G. W., The propensity score with continuous treatments. In Applied Bayesian Modeling and Causal Inference from Incomplete – Data Perspectives(eds Gelman, A. and Meng, X. L.), Wiley Inter Science, West Sussex, England, UK, 2004, pp. 73–84.

  • Anwarul, H., Rajkhowa, P. and Gulati, A., Transforming Agriculture in Odisha: Sources and Drivers of Agriculture Growth, Working Paper No. 337, Indian Council for Research on International Economic Relations, New Delhi, 2017.

  • Haque, T., Bhattacharya, M., Sinha, G., Kalra, P. and Thomas, S., Constraints and Potentials of Diversified Agricultural Development in Eastern India, Project Report, Council for Social Development, New Delhi, 2010.

  • GoI, Report of the Working Group on Agricultural Development in Eastern and Northeastern India for the Formulation of the Tenth Five Year Plan, Planning Commission, Government of India, 2001.

  • Smriti, V., Gulati, A. and Hussain, S., Doubling agricultural growth in Uttar Pradesh: sources and drivers of agricultural growth and policy lessons. Working Paper No. 335, Indian Council for Research on International Economic Relations, New Delhi, 2017.

  • Birthal, P. S., Joshi, P. K., Roy, D. and Thorat, A., Diversification in Indian agriculture towards high-value crops – the role of smallholders, Discussion Paper No. 00727, Markets, Trade and Institutions Division, International Food Policy Research Institute, Washington, DC, USA, 2007.

  • Kumar, A., Kumar, P. and. Sharma, A. N., Crop diversification in eastern India: status and determinants. Indian J. Agric. Econ., 2012, 67(4), 600–616.

  • Thapa, G., Kumar, A., Roy, D. and Joshi, P. K., Impact of crop diversification on rural poverty in Nepal. Can. J. Agric. Econ., 2018, 66, 379–413.


Abstract Views: 326

PDF Views: 102




  • The Impact of Crop Diversification Towards High-Value Crops on Economic Welfare of Agricultural Households in Eastern India

Abstract Views: 326  |  PDF Views: 102

Authors

A. R. Anuja
ICAR-Indian Agricultural Statistics Research Institute, New Delhi 110 012, India
Anjani Kumar
South Asia Office of the International Food Policy Research Institute, New Delhi 110 012, India
Sunil Saroj
South Asia Office of the International Food Policy Research Institute, New Delhi 110 012, India
K. N. Singh
ICAR-Indian Agricultural Statistics Research Institute, New Delhi 110 012, India

Abstract


Eastern India is among the most backward regions of the country with underutilizedagricultural potential. Diversification towards high-value crops can be a promising strategy to enhance farmers’ economic welfare in the region. The present study analyses the major determinants and impact of crop diversification towards high-value crops on farmers’ economic welfare in the region using large farm household-level data and advanced matching estimation methods. The findings reveal that cultivation of high-value crops plays a significant role in enhancing farm income, consumption expenditure and reducing poverty. Growers need to allocate at least 40% area for high-value crops to have significant income enhancement and poverty reduction.

Keywords


Agricultural Households, Diversification, Economic Welfare, High-Value Crops.

References





DOI: https://doi.org/10.18520/cs%2Fv118%2Fi10%2F1575-1582