Growth, Crop Diversification, Cost Structure, Changing Pattern of Input-use, and Profitability in Karnataka Agriculture

The crop diversification in Karnataka has been studied in the post-reform period, along with cost of cultivation and profitability of major crops in the state using DES (Karnataka) and CACP (GoI) data. The post-reform period has witnessed major crop diversification in the states from traditional to high-value crops. The withdrawal of government support from the farm sector and market intervention have resulted into high rise in prices of inputs and factors which caused a rise in the cost of cultivation of major crops in the state. The 2^nd period (200003 to 2011–13) has witnessed a major rise in wage cost and input cost, resulting in a rise in cost of cultivation. The profits of crops too has witnessed a increasing trend with rise in cost of cultivation.