IGNOU BECE 214 2017 2018 - Discuss the determinants of agricultural growth/diversification.

Question

Discuss the determinants of agricultural growth/diversification.

06 Mar 2018

Answer :

Word Count : 731

Diversification offers a wider choice in the production of crops in the given area. The shift in cultivation from traditional, less-remunerative crops to higher-value crops leads to higher incomes for the producer. At the same time, cultivation of a variety of crops reduces risk. Several factors can induce a shift in the crops grown. These include government policies that promote specific crops, development of infrastructure like roads and markets, and relative profitability of crops. The horizontal diversification is the increase in the number of crops grown given the economical rationality of this expansion. The extent of horizontal diversification can be gauged empirically through Simpson’s index of diversification (SID). The Simpson index for major states was computed to evaluate the extent of diversification at two-points of time, beginning and end of 1990s and has been presented in Table 2. The SID ranged from 0.47 (WB) to 0.90 (Karnataka), in 1990-91, and from 0.40 (Orissa) to

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