Diversification of rural economy: A village study
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Date
2018
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Punjab Agricultural University, Ludhiana
Abstract
The present study has been carried out in village Lohara of District Sri Muktsar Sahib (Punjab) to study the changing faces of rural economy through crop and occupational diversification of. A sample of 225 households was selected by using multistage random sampling technique.The sample consists of 104 households from farm sector and 121 households from non-farm sector. The farm households were further categorized as small (16), semi-medium (28), medium (48) and large (12) farmers according to the standard classification. The information regarding overtime changes in cropping pattern, employment and income pattern, investment pattern on farm and livestock, standard of living and factors influencing diversification was collected for the two periods of time viz. 2000-01 and 2016-17. Herfindahl-Hirschman Diversification Index (DI) was computed for both the periods under study to capture and compare the level of crop diversification. Mann-Whitney U test was applied to compare any significant difference between DI for two time periods. The crop diversification index for Kharif season was found to be increased significantly in 2016-17 over 2000-01. It was due to the shift of area towards non-basmati and basmati paddy, the strongest alternatives of cotton crop. It happened because of the failure of cotton crop due to adverse biotic and abiotic conditions such as insect pest attacks, untimely rains, etc. which resulted in poor returns from the crop. Besides, the government policies and marketing facilities in favour of paddy also attracted farmers for its cultivation. The farm investment in machinery, implements and farm buildings is found to be increased over the period of time. The analysis of occupational diversification showed that the proportion of persons in employed in agriculture and its allied activities has reduced overtime. On the other hand the employment in non-farm sector has increased. In the non-farm sector, highest proportion of persons was observed as wage earners followed by the self employees in 2016-17. The major constraints to agricultural diversification especially for not shifting from paddy-wheat cropping pattern to other crops are lack of market infrastructure, price volatility, productivity risk, marketing risk, weak resource base and high input costs. Barriers to growth leading occupational diversification reported were educational level, caste hierarchy, lack of skills, lack of opportunities and requirement of high investment in self-employment. To promote crop diversification in the state there is need to implement price difference payment scheme, development of value addition and food processing sector. Farmer Producer Organizations need to be encouraged through favourable government policies. Upliftment of educational status and skill base is suggested for growth leading occupational diversification.
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