Abstract:In the era of liberalized world, Indian agriculture is different from that of green revolution period. The agriculture growth was largely achieved by supply driven policy instruments such as irrigation, power, extension services, price support during the period of green revolution; whereas in the post reform period, the agriculture growth is demand driven, urbanization, increase in per capita income and changing consumption taste and pattern have shifted the consumer demand from food grains to live stocks and horticulture products.
Several forces influence the nature and speed of agricultural diversification from staple food to high value commodities. Earlier evidence suggests that the process of diversification out of staple food production is triggered by rapid technological change in agricultural production, improved rural infrastructure, climate related, demand and supply side factors at state as well as country level. So, the study of determinants of agriculture diversification enables us to know the dominating factors in a particular region that control the agriculture practice.
The literature review on the topic offers ample scope for a critical and retrospective examination of the previous work done. Hence, because of conspicuous lack of research studies and inadequate empirical evidence regarding diversification, it is extremely important to examine the determinants of diversification at macro level.