Sikkim’s transition to organic farming: Assessing structural break using dummy variable model

Sikkim was declared as the first organic state in the world in 2016 with adoption of cent percent organic farming practices while preserving the flora and fauna, lively ecology, and soil fertility. In 2010, the State launched ‘Organic Mission’ and removed the incentives for the purchase of all chemical farm inputs as well as the import of chemical fertilizers. This significant development might have induced changes in agriculture sector in the State which need to be investigated timely to remain safeguard from any unwanted change. Therefore, this paper assessed the structural changes in the crop sector, if any occurred and how the demand-supply gap will be affected. It was found that the state’s organic policy has negative effect on the area planted for different food grain crops, with the exception of maize but positive impact was observed on the yields of all food grain crops in the State. No structural change was noticed for pulses in the State. Positive change was identified as a result of the programme in area under ginger, turmeric, vegetables and fruits whereas oilseeds area declined, but, yield of vegetables and rape seed and mustard increased after 2010. A massive deficit was forecasted for the food grains in the state by 2024-25 as per current trend. Hence, efforts should be made to enhance the organic production by bringing newer areas under cultivation and improving the yield as it provides safe and sustainable food. Establishing specific organic market with premium prices, organic supply chain, introduction of effective package of practices and development of effective bio-pesticides would aid in improving the yield of the crops and boost the local economy.