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Agricultural growth and crop diversification in India: a state-level analysis
- RESEARCH PAPER
- Published: 12 January 2024
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- Nikkita Gupta 1 &
- Elumalai Kannan 1
This paper focuses on trend in India’s agricultural growth estimated based on structural breaks in agricultural GDP from 1981–82 to 2019–20, using Bai–Perron multiple breakpoint method. The paper also examines the relationship between agricultural growth and crop diversification. At the national level, five structural breaks in agricultural GDP were identified: 1987–88, 1992–93, 1997–98, 2003–04, and 2011–12. At the state level, structural break points occurred at different time periods indicating the effect of state-specific policy changes or occurrence of extreme climatic events. The southern, western, and central regions have highly diversified cropping pattern, whereas eastern and northern regions follow a specialised cropping pattern. Panel instrumental variable regression results show that crop diversification has a positive and statistically significant effect on agricultural output controlling for effects of other variables such as gross terms of trade, irrigation, cropping intensity, public capital expenditure, fertiliser use and labour. The study results have policy implications for promoting crop diversification that holds the key to sustain agricultural growth in the long run.
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According to Kurosaki ( 2003 ), CDI has the intuitive meaning of the probability of hitting different crop if two points are randomly chosen from the whole area under cultivation in a state/district. Besides Herfindahl–Hirschman index, there are other alternative measures used for computing the level of crop diversification (for details see, Shiyani and Pandya 1998 ; Chand 1999 ). Conceptual definition and approaches on diversification in agriculture can be found in Vyas ( 1996 ) and Chand ( 1999 ). Although many studies have considered proportion of area under individual crops in total cropped area (i.e. shift in area from one crop to another crop) as a measure of crop diversification, role of price in influencing the decision of farmers for a shift in cropping pattern can be incorporated in the crop diversification index. The modified index can be written as, CDI* \(=1-\sum_{i=1}^{n}({Q}_{i}{P}_{i}/\sum_{i=1}^{n}{Q}_{i}{P}_{i})\) 2 , where Q is i th crop output and p is price of i th crop output.
In this study, Eq. ( 5 ) is estimated as a production function. We acknowledge the limitation of the current approach as there could be a theoretical linkage between road density and agricultural output.
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Acknowledgements
Authors sincerely thank three anonymous referees for their insightful comments, which helped to revise the paper substantially. Authors are also thankful to the Editors of this journal for their constructive suggestions.
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Gupta, N., Kannan, E. Agricultural growth and crop diversification in India: a state-level analysis. J. Soc. Econ. Dev. (2024). https://doi.org/10.1007/s40847-023-00311-7
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Published : 12 January 2024
DOI : https://doi.org/10.1007/s40847-023-00311-7
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AGRICULTURE SECTOR AND RURAL DEVELOPMENT IN INDIA: AN EMPIRICAL ANALYSIS
The present research paper has focused on the role of the agriculture sector in rural development of India. The secondary data were used and it was obtained from various sources like annual reports of agriculture and farmers welfare department, ministry of rural development, census reports, and NSSO data. Agriculture sector significantly contributes to the positive improvement of the economy generally and rural development particularly. India is an agricultural country with 195 million hectares is gross cropped area, 141 million hectares of land as net sown area, the highest percentage of land under cultivation in the world. The country accounts for 17.7 percent of the world's population and ranks in the second largest populated country. The country has about 68.8 percent of the population living in its rural areas and the only source of their livelihood is agriculture and allied activities. The total production of food grains was increased from 259.29 million tonnes in 2011-12 to 284.95 million tonnes in 2018-19. The contribution of agriculture in gross value added at basic prices has continuously fallen in India from 17.72 percent in 2012-13 to 14.09 percent in 2019-20. The share of agriculture in employment declined from about 69.7 percent in 1951 to about 54.6 percent by 2011. The amount of agricultural credits are very much insufficient and the private non-institutional sources still remained a significant contribution in supplying credit to the farmers and rural peoples. To achieve sustainable rural International Research Journal of Human Resource and Social Sciences ISSN(O): (2349-4085) ISSN(P): (2394-4218) Impact Factor 5. development through agricultural practices, it needed the more than four percent growth rate in agriculture, provision of quality and adequate quantum of inputs such as quality seeds, fertilisers, and their timely supply besides electricity, socioeconomic inclusion policy and participation of the rural people in development strategies are the key concerns of the policy.
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