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Crop Diversification and its Impact on Farmincome and poverty in karnataka: an Economic Analysis

By: Contributor(s): Material type: TextTextLanguage: English Publication details: Dharwad University of Agricultural Sciences, Dharwad 2025Edition: P hd (Agri)Description: 225 32 CmsDDC classification:
  • 338.105 NAG
Summary: Cropdiversificationrepresentsacrucialstrategyformaximizingtheuseof land,water and other resources, thereby fostering overall agricultural development. Farmers gain viable options to cultivate various crops, mitigating risks and uncertainties caused by climatic and biological vagaries. This study, titled "Crop Diversification and its Impact on Farm Income and Poverty in Karnataka: An Economic Analysis," examines the effects of crop diversification across three agro-climatic zones, Northern Dry Zone (NDZ), Northern TransitionZone(NTZ) andHillyZone(HZ)usingasampleof270farmersfortheyear2022-23. The study explores crop diversification impact on farm income, rural poverty and constraints faced by farmers, with a specific focus on socio-economic features, cropping patterns, food consumption and costs and returns of crop production. Various statistical methods, including compound growth rate analysis, Markov chain analysis, budgeting techniques, Crop Diversification Index, Multiple Linear Regression, logistic regression and Gini coefficient, were applied. Significant growth in pulses (6.97%) and plantation crops (12.81%) occurred from 2001 to 2021, while oilseeds and millet crops declined in both area and production. The Composite Entropy Index (CEI) showed state-level improvement in diversification, with the mean CEI rising from 0.71 in 2001 to 0.72 in 2020. Districts like UttaraKannadaand Mandya showed significantincreasesindiversification,whileBallari and Raichur experienced reductions. The NDZ had a moderate CEI of 0.57, NTZ had a higherCEIof 0.61 and the Hilly Zone had a lower CEI of 0.55. Moderate diversification in the NDZ resulted in thehighest net incomeof Rs. 1,89,901 perhectare. Veryhigh diversification in the NTZ led to the highest profitability of Rs. 78,894 per hectare, while very high diversification in the Hilly Zone resulted in Rs. 4,67,242 per hectare. Larger landholdings and irrigation positively impacted profitability, especially in the NDZ and NTZ. Monthly Per Capita Consumer Expenditure (MPCE) was highest in households with moderate diversification in theNDZ(Rs.3,115),veryhigh diversificationintheNTZ(Rs.4,466)and highdiversification in the Hilly Zone (Rs. 3,307). The study found a positive relationship between diversification and MPCE, with family size negatively affecting MPCE. Key constraints to crop diversification included unpredictable rainfall and poor water harvesting in the NDZ, inadequate irrigation and labor shortages in the NTZ and limited access to quality planting materials in the Hilly Zone. Marketing issues, such as price volatility and high marketing costs, were common across all zones, while economic constraints included limited financial services and high input costs. Crop diversification positively impacts farm income, rural poverty reduction and household welfare in Karnataka. Addressing regional constraints remains essential for further improvements.
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THESIS University of Agricultural Sciences, Dharwad 338.105/NAG 1 Available T14157

Cropdiversificationrepresentsacrucialstrategyformaximizingtheuseof land,water and other resources, thereby fostering overall agricultural development. Farmers gain viable options to cultivate various crops, mitigating risks and uncertainties caused by climatic and biological vagaries. This study, titled "Crop Diversification and its Impact on Farm Income and Poverty in Karnataka: An Economic Analysis," examines the effects of crop diversification across three agro-climatic zones, Northern Dry Zone (NDZ), Northern TransitionZone(NTZ) andHillyZone(HZ)usingasampleof270farmersfortheyear2022-23. The study explores crop diversification impact on farm income, rural poverty and constraints faced by farmers, with a specific focus on socio-economic features, cropping patterns, food consumption and costs and returns of crop production. Various statistical methods, including compound growth rate analysis, Markov chain analysis, budgeting techniques, Crop Diversification Index, Multiple Linear Regression, logistic regression and Gini coefficient, were applied. Significant growth in pulses (6.97%) and plantation crops (12.81%) occurred from 2001 to 2021, while oilseeds and millet crops declined in both area and production. The Composite Entropy Index (CEI) showed state-level improvement in diversification, with the mean CEI rising from 0.71 in 2001 to 0.72 in 2020. Districts like UttaraKannadaand Mandya showed significantincreasesindiversification,whileBallari and Raichur experienced reductions. The NDZ had a moderate CEI of 0.57, NTZ had a higherCEIof 0.61 and the Hilly Zone had a lower CEI of 0.55. Moderate diversification in the NDZ resulted in thehighest net incomeof Rs. 1,89,901 perhectare. Veryhigh diversification in the NTZ led to the highest profitability of Rs. 78,894 per hectare, while very high diversification in the Hilly Zone resulted in Rs. 4,67,242 per hectare. Larger landholdings and irrigation positively impacted profitability, especially in the NDZ and NTZ. Monthly Per Capita Consumer Expenditure (MPCE) was highest in households with moderate diversification in theNDZ(Rs.3,115),veryhigh diversificationintheNTZ(Rs.4,466)and highdiversification in the Hilly Zone (Rs. 3,307). The study found a positive relationship between diversification and MPCE, with family size negatively affecting MPCE. Key constraints to crop diversification included unpredictable rainfall and poor water harvesting in the NDZ, inadequate irrigation and labor shortages in the NTZ and limited access to quality planting materials in the Hilly Zone. Marketing issues, such as price volatility and high marketing costs, were common across all zones, while economic constraints included limited financial services and high input costs. Crop diversification positively impacts farm income, rural poverty reduction and household welfare in Karnataka. Addressing regional constraints remains essential for further improvements.

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