This paper examines the experience of crop diversification in Indian Punjab through involvement of private corporate companies twice. The intention of the policy planners to develop interface of agriculture with agro-processing companies for solving the problem of low income of farmers and save water did not succeed. This is discussed in the light of market form represented by these companies. Contrary to perfect competition these companies display imperfect competition especially monopsony/ oligopsony in nature. In these market forms the companies use their market power to extract abnormal/super profits when they deal with farmers . It is further brought out that bureaucracy lacks capacity to protect the interests of the farmers when they have interface with the big companies. This makes task of developing integration of agriculture with industry for inclusive development difficult in the Indian context. The policy planners have to think creatively to devise measures to resolve critical issues of transitional phase of Indian agriculture.
Agrarian crisis, Crop diversification, Corporate companies, Policy change and bureaucracy, Monopsony, Oligopsony, Agriculture industry interface
