Agricultural Diversification in Himachal Pradesh: An Economic Analysis

Objective: The study about diversification in agriculture has been carried out to explain extent and trend of agriculture diversification and to know about the factors affecting the agriculture diversification in the State of Himachal Pradesh. Methods: The present study explain the extent and trend of diversification using Simpson Index and percentage of area under non-food grain crops applied on the data collected from reliable sources throughout the State that widens the scope for improvement and development in agriculture. Step wise linear regression method was carried out for data collected from 1972-73 to 2011-12 to find out the drivers of crop diversification. Findings: Kinnaur, Lahaul & Spiti, Shimla and Sirmour districts of Himachal Pradesh witnessed tendency towards diversified agriculture at varying extents. Diversification towards high value cash crops in most of the districts did take place but its intensity was quite pronounced in Lahaul & Spiti, Kinnaur, Shimla and Kullu where the increase in area under the non-food grains was varied from 17.18% in Kullu to 57.47% in Kinnaur over 1972-73. Application: Average size of land holding, regulated market infrastructure and irrigated area were the important determinants, which were positively related with the crop diversification. Agriculture diversification is an option to stabilize and raise farm incomes of the farmers in the study area.