Evaluation of the Policy of Crop Diversification as a Strategy for Reduction of Rural Poverty in India

This paper examines the effectiveness of crop diversification in ensuring greater availability of food and nutrition to the Indian cultivators, under varied irrigation and infrastructure conditions. We undertake empirical investigation with primary farm-level data into the extent and severity of poverty and food deprivation among very marginal, marginal and small farmers, practicing crop diversification to different degrees, in three districts of an Indian province. The viability of the strategy is also examined by comparing farm-level efficiency and profitabilityProfitability of high-value crops vis-à-vis traditional crops. By and large, our test results indicate an inverse association between the extent of crop diversification and calorie intake per capita across the regions. In areas suffering from adverse soil and other characteristics which make it difficult to develop irrigation, farmers are compelled to diversify away from water-intensive traditional crops to ensure a minimum acceptable level of consumption, but they still find it hard to avoid poverty and malnutrition. By contrast, in places where the farmers develop access to irrigation through private investment, crop diversification enables them to maintain some reasonable level of consumption and positive net income. But high-value crop production results in low profitability and relative inefficiency. The study indicates the need for a more direct policy intervention to ensure effectiveness of crop diversification as a strategy for reduction of rural poverty in India.