ASSESSMENT OF AGRICULTURAL COMMERCIALIZATION AMONG SMALLHOLDER FARMING HOUSEHOLDS IN HIMACHAL PRADESH
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Date
2024-07-01
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UHF Nauni
Abstract
The present study has been carried out on assessment of agricultural commercialization among smallholder
farming households in Himachal Pradesh. The study employed a multi-stage random sampling technique to choose
households for sampling in the study area. Primary data was collected from a sample of 388 farmers who were the
primary decision-makers in their households. The data collection was done using a well-designed pre-tested schedule
through a survey method. The necessary secondary data were gathered from a variety of publications and government
departments. Statistical and econometric methods were employed to analyze the data. The level of commercialization
was determined using the household commercialization index, the factors influencing the process of agricultural
commercialization were identified using the double-hurdle model, the impact of commercialization on farmers'
livelihoods was assessed using the livelihood assessment index, and the challenges faced by the chosen farmers during
the commercialization process were identified using the Garrett ranking technique. Findings showed that the research
area has a moderately high degree of commercialization (about 67.23%). Households in the districts of Kangra,
Mandi, and Shimla sold, on average, 55.52%, 89.11%, and 53.30% of their entire agricultural production. Food grains
were the most commercialised crop in the Kangra district, vegetable crops had the highest commercialization index in
the Mandi district, and fruits had the highest level of commercialization in the Shimla district. This illustrates how
agriculture has become more diversified as a result of the state's diverse agro-climatic conditions. The Probit model's
findings showed that the intensity of agricultural commercialization was positively and significantly impacted by
factors such as post-harvest storage facilities, farm size, farming experience, adoption of mixed farming, and access to
credit. However, the degree of commercialization was negatively and significantly impacted by age, education, and
the type of labour employed. According to the results of truncated regression, the degree of agricultural
commercialization was positively and significantly impacted by gender, agriculture as the primary occupation, farm
size, farming experience, adoption of mixed farming, kind of labour used, and animal ownership. The degree of
agricultural commercialization of the commercialised farmers was, however, negatively and significantly impacted by
factors such as age, household size, and distance from farm to market. The livelihood index results indicated that
farmers' livelihood indices had increased after the commercialization process. The selected farmers' livelihood index
was 0.27 prior to commercialization, and it increased to 0.59 after commercialization. The results indicate that the
process of commercialization has a beneficial impact on the farmers' means of living According to the Garrett ranking
results, the major resource-related challenges that smallholder farmers encountered were a lack of storage facilities,
the size of their farms, and a labour shortage. The major input-output related issues that farmers encountered were
price fluctuations, low output prices, and expensive improved seed. The major challenges that farmers in the research
area encountered with regard to biophysical activities were unpredictable rainfall, crop pests and diseases, and limited
access to irrigation. The study recommends the need for designing appropriate intervention mechanisms focusing on
the abovementioned factors so as to improve the performance of agricultural commercialization. The results highlight
the need to enhance smallholder market integration programmes and increase agricultural commercialization by
encouraging the development of market information delivery platforms