Diversification in Crop Sector: Status and Prospectus in Meghalya State of North-Eastern Hill Region of India

This paper, relying upon the secondary data available, attempts to find out the contribution of different crops in overall growth of crop sector in Meghalaya. Compound annual growth rates, trends, Simpson Diversity Index (SID) were estimated to come at logical conclusion. It is found that the shares of cereals and vegetables in total acreage have declined in between TE ending 1998–99 and TE 2004–05. Reverse trends were observed in case of high value crops, such as spices and arecanut during the same period in the state. The values of SID have remained around 0.5 over the last decade implies presence of diversification. The state has moved towards greater diversification during the last decade as the value SID has increased over the years. The share of cereals in overall growth of crop sector was maximum (65.53%), followed by high value crops such as, spices, arecanut and pulses. Cereals and vegetables have registered negative growth in last decade whereas spices, oilseeds and arecanut have registered positive growth in case of acreage and total production which is a clear indication of moving towards diversity. High price volatility and instability involved with vegetables compared to cereals may be the reason for reduction in the area. To speed-up the process of agricultural diversification, government need to take series of reform measures to integrate production and markets efficiently. Contract farming, cooperatives and group actions may help small holders in augmenting their farm income through aversion of risk and uncertainty.