An Economic Analysis of Crop Diversification and Its Determinants in Bihar Agriculture

Ahmad, Nasim and Singh, K M and Sinha, D K (2020): An Economic Analysis of Crop Diversification and Its Determinants in Bihar Agriculture.

Abstract

The nature and extent of crop diversification in the state of Bihar has been analyzed using secondary data obtained from different publish sources of Govt. of Bihar from 2000-01 to 2014-15 i.e. a period of 15 years. Composite Entropy Index (CEI) and double log step-wise linear regression model was applied to assess the determinants of crop diversification in the state. The results have revealed that in almost all crops group very low diversification indices were observed. The study has suggested that despite plenty of natural resources available in the state, the economic improvement of farmers is in infancy. Pre-requisite infrastructural facilities like cheap sources of irrigation water (assured irrigation as the monsoon in the present decade had been erratic and scanty rainfall) and extension of technological know-how (quality seeds and fertilizers), may acts as catalyst in diversification of agriculture towards high-valued crops. These developmental efforts may be helpful in fetching good incomes by the cultivators.

• Item Type: MPRA Paper
• Language: English
• Keywords: Diversification, Composite Entropy Index (CEI)
• Subjects: O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O11 - Macroeconomic Analyses of Economic Development; O - Economic Development, Innovation, Technological Change, and Growth > O1 - Economic Development > O13 - Agriculture ; Natural Resources ; Energy ; Environment ; Other Primary Products; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q12 - Micro Analysis of Farm Firms, Farm Households, and Farm Input Markets; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q15 - Land Ownership and Tenure ; Land Reform ; Land Use ; Irrigation ; Agriculture and Environment; Q - Agricultural and Natural Resource Economics ; Environmental and Ecological Economics > Q1 - Agriculture > Q16 - R&D ; Agricultural Technology ; Biofuels ; Agricultural Extension Services

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