Abstract:
This paper has assessed the diversification scenario of agriculture at the national level and its reflection
at farm level situation alongside. It has been observed that concentration ratio (CR4) for four major
agricultural sub-sectors has declined from 73.6 per cent to 69.6 per cent for the study period, 1999-00 to
2013-14. It clearly indicates a shift in Indian agriculture from cereals-based production pattern to other
high-value based production pattern. However, Simpson Index for Diversification (SID) indicates that
the average national SID for all agricultural enterprises is 0.83 which spans from 0.60 for Punjab to 0.89
for Karnataka. Relating it to farm level situation, the primary survey in Banka and Bhagalpur districts of
Bihar has been carried out in 2016-17 to find out the impact of agricultural diversification on farm
income with two-stage least square technique (2SLS). Empirical analysis has suggested that diversification
of farm by adopting ancillary, horticulture and other HVE like mushroom, etc. will increase farm income.
