Crop Diversification, Agricultural Transition and Farm Income Growth: Evidence from Eastern India
Published 2022-11-25
Keywords
- crop diversification,
- farm income,
- agricultural transition,
- Odisha
How to Cite
Abstract
This paper examines the role of crop diversification in agricultural transition towards high-value crops as well as farm income growth in Odisha, Eastern India. The empirical analysis reveals some crucial facts: first, a stagnant and relatively low level of crop diversification in Odisha agriculture. Second, there is an insignificant agricultural transition due to the negative area substitution effect for most of the crops, along with a weak expansion effect over the last two decades from 1995-2018. Third, a declining contribution of productivity growth coupled with an insignificant contribution of crop diversification to the farm income growth over the years. Hence, we conclude no or an insignificant agricultural transition from traditional to high-value modern agriculture in Eastern India, causing unsustainable farm income growth. This calls for an urgent need to promote a mixed cropping pattern and colossal investment to encourage the farmers to transition towards high-value crops, stimulating farm income growth. Furthermore, massive efforts are required to make farmers aware of the advantages of diversification.
Downloads
Metrics
References
- Acharya S.S., Chand R., Birthal P.S., Negi D.S. (2012). “Market integration and price transmission in India: A case of rice and wheat with special reference to the World Food Crisis of 2007/2008”. Rome: Food and Agriculture Organization.
- Akber N. (2022). Capital Formation in Indian agriculture: An empirical analysis. PhD Thesis submitted to SMVD University, India.
- Akber N., Kirtti Ranjan Paltasingh (2021). Agricultural growth and investments in India: assessment of recent trends, breaks, and linkages. Italian Review of Agricultural Economics, 76(2): 17-30. DOI: 10.36253/rea-12057
- Anwer M.E., Sahoo B.K., Mohapatra S. (2019). Spatio-temporal variations in agricultural diversification in India: Determinants and convergence. Journal of Agribusiness in Developing and Emerging Economies, 9(5), 476-502. DOI: https://doi.org/10.1108/JADEE-11-2018-0161
- Banerjee G.D., Banerjee S. (2015). Crop diversification: an exploratory analysis. In: Ghose M., Sarkar D., Roy B.C. (eds) Diversification of Agriculture in Eastern India, Springer India, New Delhi.
- Basantaray A.K., Nancharaiah G. (2017). Relationship between crop diversification and farm income in Odisha: an empirical analysis. Agricultural Economics Research Review, 30: 45-58. DOI: 10.5958/0974-0279.2017.00021.0
- Bertoni D., Aletti G., Cavicchioli D., Micheletti A., Pretolani R. (2021). Estimating the CAP greening effect by machine learning techniques: A big data ex post analysis. Environmental Science & Policy, 119: 44-53. DOI: https://doi.org/10.1016/j.envsci.2021.01.008
- Bertoni D., Aletti G., Ferrandi G., Micheletti A., Cavicchioli D., Pretolani R. (2018). Farmland use transitions after the CAP greening: a preliminary analysis using Markov chains approach. Land Use Policy, 79: 789-800. DOI: https://doi.org/10.1016/j.landusepol.2018.09.012
- Birthal P.S., Joshi P.K., Roy D., Thorat A. (2007). Diversification in Indian Agriculture towards High-Value Crops: The Role of Smallholders. IFPRI Discussion Paper 00727, IFPRI, New Delhi.
- Birthal P.S., Negi D.S., Jha A.K., Singh D. (2014). Income sources of farm households in India: determinants, distributional consequences, and policy implications. Agricultural Economics Research Review, 27(1): 37-48. DOI: 10.5958/j.0974-0279.27.1.003
- Birthal P.S., Roy D., Negi D.S. (2015). Assessing the impact of crop diversification on farm poverty in India. World Development, 72: 70-92. DOI: https://doi.org/10.1016/j.worlddev.2015.02.015
- Birthal P.S., Hazrana J. (2019). Crop diversification and resilience of agriculture to climatic shocks: Evidence from India. Agricultural Systems, 173: 345-354. DOI: https://doi.org/10.1016/j.agsy.2019.03.005
- Bustos P., Caprettini B., Ponticelli J. (2016). Agricultural productivity and structural transformation: Evidence from Brazil. American Economic Review, 106(6): 1320-65. DOI: 10.1257/aer.20131061
- Christiaensen L., Demery L., Kuhl J. (2011). The (evolving) role of agriculture in poverty reduction-An empirical perspective. Journal of Development Economics, 96(2): 239-254. DOI: https://doi.org/10.1016/j.jdeveco.2010.10.006
- Dasgupta S., Bhaumik S.K. (2014). Crop diversification and agricultural growth in West Bengal. Indian Journal of Agricultural Economics, 69(1): 107-124. DOI: 10.22004/ag.econ.206369
- Datt G., Ravallion M., Murgai R. (2020). Poverty and growth in India over six decades. American Journal of Agricultural Economics, 102(1): 4-27. DOI: https://doi.org/10.1093/ajae/aaz043
- De U.K. (2003). Economics of Crop Diversification. Akansha Publishing House, New Delhi.
- Emran M.S., Shilpi F. (2012). The Extent of market and stages of agricultural specialization. Canadian Journal of Economics, 45(2): 1125-1153. DOI: https://www.jstor.org/stable/23270575
- Foster A.D., Rosenzweig M.R. (2004). Agricultural productivity growth, rural economic diversity, and economic reforms: India, 1970-2000. Economic Development and Cultural Change, 52(3): 509-542. DOI: https://doi.org/10.1086/420968
- Gollin D., Parente S., Rogerson R. (2002). The role of agriculture in development. American Economic Review, 92(2): 160-164. DOI: http://www.jstor.org/stable/3083394
- Joshi P.K., Birthal P.S., Minot N. (2006), Sources of agricultural growth in India: Role of diversification towards high-value crops. MTID discussion paper no. 98, International Food Policy Research Institute (IFPRI), New York, USA.
- Joshi P.K., Gulati A., Birthal P.S. (2007). Agricultural diversification in India-status, nature & pattern. In Joshi P. K., Gulati A., Cummings R. Jr. (eds.): Agricultural diversification and smallholders in South Asia. Academic Foundation, New Delhi.
- Kumar A., Kumar P., Sharma A.N. (2012). Crop diversification in Eastern India: status and determinants. Indian Journal of Agricultural Economics, 67(4): 600-616. DOI: 10.22004/ag.econ.204840
- Macours K., Premand P., Vakis R. (2012). Transfers, diversification and household risk strategies: experimental evidence with lessons for climate change adaptation. Policy Research Working Paper No. 6053, The World Bank, Washington, D.C.
- Matthews A. (2020). Promoting climate action in the future Common Agricultural Policy. Italian Review of Agricultural Economics, 75(3): 19-24. DOI: https://doi.org/10.13128/rea-12705
- Michler J.D., Josephson A.L. (2017). To specialize or diversify: Agricultural diversity and poverty dynamics in Ethiopia. World Development, 89: 214-226. DOI: https://doi.org/10.1016/j.worlddev.2016.08.011
- Minot N. (2003). Income diversification and poverty reduction in the northern uplands of Vietnam. Paper presented at the annual meeting of the American Agricultural Economics Association (AAEA), Montreal, Canada, 27-30 July.
- Nayak C., Kumar C.R. (2019). Crop diversification in Odisha: an analysis based on panel data. Agricultural Economics Research Review, 32(1): 67-80. DOI: 10.5958/0974-0279.2019.00006.5
- Nayak D.K. (2016). Changing cropping pattern, agricultural diversification, and productivity in Odisha: A district-wise study. Agricultural Economics Research Review, 29(1): 93-104. DOI: 10.5958/0974-0279.2016.00022.7
- Paltasingh K.R., Goyari P. (2011). Measuring agricultural growth and crop diversification in Odisha. In Mishra R.K., Srinivas K. (eds.): Econometric Applications for Managers, Allied Publishers, New Delhi.
- Paltasingh K.R., Goyari P. (2013). Analyzing growth and instability in subsistence agriculture of Odisha: Evidence from major crops. Agricultural Economics Research Review, 26: 67-78. DOI: 10.22004/ag.econ.158492
- Panda R.K. (2015). Trend and pattern of crop diversification in Odisha. In Ghosh M., Sarkar D., Roy B.C. (eds.): Diversification of Agriculture in Eastern India, Springer, New Delhi.
- Pandey G., Kumari S. (2021). Dynamics of agricultural growth and diversification in Eastern India. Journal of Agribusiness in Developing and Emerging Economies, 11(2): 105-120. DOI: https://doi.org/10.1108/JADEE-06-2020-0131
- Paut R., Sabatier R., Tchamitchian M. (2019). Reducing risk through crop diversification: An application of portfolio theory to diversified horticultural systems. Agricultural Systems, 168: 123-130. DOI: https://doi.org/10.1016/j.agsy.2018.11.002
- Pingali P.L., Rosegrant M.W. (1995). Agricultural commercialization and diversification: processes and policies. Food Policy, 20(3): 644-651. DOI: https://doi.org/10.1016/0306-9192(95)00012-4
- Ravi C., Roy D. (2006). Consumption patterns and food demand projections, a regional analysis. Draft Report submitted to IFPRI, New Delhi.
- Reardon T., Timmer C.P. (2007). Transformation of markets for agricultural output in developing countries since 1950: How has thinking changed? Handbook of Agricultural Economics, 3: 2807-2855. DOI: https://doi.org/10.1016/S1574-0072(06)03055-6
- Ryan J.G., Spencer D.C. (2001). Future Challenges and Opportunities for Agricultural R and D in the Semi-Arid Tropics. International Crops Research Institute for the Semi-Arid Tropics, Patancheru, India.
- Sahoo P., Sahoo D., Chandra S. (2020). Changes in rural poverty among occupational groups in Odisha: an analysis of post-reform period. Journal of Land and Rural Studies, 8 (2): 150-165. DOI: https://doi.org/10.1177/2321024920914759
- Satyasai K.J.S., Viswanathan K.U. (1996). Diversification in Indian agriculture and food security. Indian Journal of Agricultural Economics, 51(4): 674-679. DOI: 10.22004/ag.econ.297496
- Senapati A.K., Goyari P. (2019). Growth and instability in agricultural productivity in Odisha. Agricultural Economics Research Review, 32(1): 55-65. DOI: 10.5958/0974-0279.2019.00005.3
- Sharma H.R. (2005). Agricultural development and crop diversification in Himachal Pradesh: understanding the patterns, processes, determinants, and lessons. Indian Journal of Agricultural Economics, 60(1): 71-93. DOI: 10.22004/ag.econ.204388
- Tamburini G., Bommarco R., Wanger T.C., Kremen C., van Der Heijden M.G.A., Liebman M., Hallin S. (2020). Agricultural diversification promotes multiple ecosystem services without compromising yield. Science Advances, 6(45), eaba1715. DOI: 10.1126/sciadv.aba1715
- Timmer C.P. (2009). World Without Agriculture: The Structural Transformation in Historical Perspective. Aei Press.