Can Diversification be a Strategy Towards Commercialisation of Agriculture? Evidence from Rural Urban Interface of Bengaluru

摘要

This study is designed to assess the impact of crop diversification on commercialisation of farm households. While studies find positive effects of diversification and commercialisation on farmers’ income, little evidence is found on, the relation between diversification and commercialisation. The Herfindahl index and household crop commercialisation index was used in this study to capture the extent of crop diversification and commercialisation, respectively. The regression adjustment method is utilized because treatment effect estimates are frequently prone to misspecification in either the treatment or outcome equation. Random sampling technique is used to collect data from 180 farm households across rural, transition and urban gradients, 60 each from each gradient of North Bengaluru. The means of Herfindahl indexand crop commercialisation index showed that, the rural farmers were highly diversified (0.50) and urban farmers were highly commercialised (33 ), respectively. The farm households intransition were found least commercialized and diversified. The average per cent of commercialisation, if all farmers were not diversified was 11 per cent lower than the per cent of commercialisation if all farmers were diversified, according to regression adjustment results. Diversification barring de-risking strategy also promotes biodiversity and environmental sustainability. In consequence, the initiatives and policy should encourage farm households to become diversified, which will lead to more commercialization.