15. Causes of Agricultural Diversification in Bihar and Jharkhand

This chapter argues that agricultural diversification in India has been towards a continuous increase in the share of allied activities and decline in the share of crop sector since the late sixties. Within crop sector, the trend of diversifications has, however, been changing periodically. In spite of these periodic shifts in crop acreage, proportionate area under fine cereals had been increasing over a long period. Though in some of the states, this trend continues, the recent trend in crop diversification shows decline in percent area under fine cereals and increase in percent area under non-foodgrain crops. Empirical evidence shows that crop diversification in Bihar has been towards pulses, fibre crops, oilseeds, cereals and sugarcane during the period from 2000–01 to 2008–09. During the same period, farmers in Jharkhand have been diversifying towards oilseeds, pulses, maize and wheat. Based on these findings, this study has suggested that in order to generate additional income by enhancing employment opportunities in rural areas on sustainable basis, the farmers need to be encouraged to undertake those non-food crops, which have greater potentiality of value-addition.