Crop Diversification towards High-value Crops in India: A State Level Empirical Analysis

The paper has examined state-level trends and patterns in crop diversification in India for the period 1990–91 to 2011–12 using Simpson Index of Diversification (SID) and panel regression analysis. The study has revealed that cropping pattern at state level is transforming from foodgrains to high-value crops but the transformation is not uniform across the states/regions. The values of SID have confirmed that the agricultural economy has diversified in all the states with some fluctuations in case of food crops and non-food crops. The results of Fixed Effect Model have revealed cropping intensity, average annual rainfall and gross irrigated area to be the major determinants of crop diversification. The study has suggested that policy support in terms of enhanced cropping intensity, gross irrigated area, insurance coverage, investment in agricultural research and education, and technology development need to be extended to the farmers.