Economic Analysis of Crop Diversification Under Inorganic and Organic Farming System

An Economic Analysis of Crop Diversification under Inorganic and Organic Farming in West Bengal
Ranjan K. Biswas
There is a dramatic change in the earning, spending and saving pattern of the people of India in the post reform (economic) period that is post 1991. During this period, income generating mechanism in this country underwent massive changes. With a sustained economic growth, rising per capita income along with an ever increasing population, the dietary pattern in India is also changing very fast. The Indian food basket is diversifying in favour of high value food commodities like fruits, vegetables, dairy products, poultry products and fish products from staple food such as rice, wheat and coarse cereals. This raises a challenge to Indian agriculture.
On the other hand the modern agriculture dominated by chemical and irrigation intensive farming system has not only raised productivity but simultaneously has also resulted in soil erosion, water contamination, pesticides poisoning, land degradation through water logging and soil salinity, depletion of bio-diversity, etc., forcing farmers to apply ever-increasing doses of fertilisers and to make water supply available on a continuous basis, in order to maintain the productivity levels. This again raises another challenge to Indian agriculture.
It may not be wondering if we assume that organic farming system may generate such situation to address both the challenges mentioned above.
This paper is concerned with an analysis of crop diversification under organic and inorganic farming in West Bengal.
Crop diversification is different from the concept of multiple cropping or succession planting over the growing seasons. Moreover, it implies the use of environmental and human resources to grow a mix of crops with complementary marketing opportunities. Thus, it implies a shifting of resources from low value crops to high value crops such as fruits, vegetables, etc. The concept of crop diversification in globalized market of agricultural produce refers to increase the total crop productivity in terms of quality, quantity and monetary value under different specific agro-climatic situations across the world. There are two approaches to crop diversification in agriculture. First is horizontal diversification, which is the primary approach to crop diversification in production agriculture. The approach takes place through crop intensification by adding new high-value crops to existing cropping systems. Thus, the approach facilitates the improvement of overall productivity of a farm or farming economy of a region. The second approach is the vertical diversification. Under this approach, farmers and others add value to products through processing, regional branding, packaging, merchandising or other efforts to enhance the farm-product. The opportunities for crop diversification may vary depending on risks, opportunities and the feasibility of proposed changes within a socio-economic and agro-economic context. However, crop diversification through substitution of one crop or mixed cropping / inter-cropping may be a useful tool to mitigate problems associated with aberrant weather to some extent, especially in the arid and semi-arid drought-prone / dry land areas.
Impact of crop diversification Crop diversification is intended to practice of growing more than one crop (or enterprise) in any year to increase financial and biological stability of the farm. In the agricultural context, diversification can be regarded as the re-allocation of some of a farm's productive resources, such as land, capital, farm equipment and paid labour, into new activities. These can be new crops or livestock products, value-adding activities, provision of services to other farmers, etc. On the other hand, diversification of agriculture refers to the shift from the regional dominance of one crop to regional production of a number of crops, to meet ever increasing demand for cereals, pulses, oilseeds, fruits and vegetables, etc. It aims to improve soil health and a dynamic equilibrium of the agro-ecosystem. Crop diversification takes into account the economic returns from different value-added crops.
Crop diversification can better tolerate the ups and downs in the market value of farm products and may ensure economic stability for farming families of the state. The adverse effects of aberrant weather, such as erratic and scanty rainfall and drought are very common in a vast area in agricultural production of the state. Incidents of flood in one part and drought in the other part are a very frequent phenomenon in the state. Under these aberrant weather situations, dependence on one or two major cereals (rice, wheat, etc.) is always risky. Diversification in agriculture has tremendous impact on the agro-socio-economic condition and uplifting resource-poor farming communities. It generates income and employment for rural youth year round for the ultimate benefits of the farmers in the state. It implies the use of local resources in a larger mix of diverse cropping systems and livestock, aquaculture and other non-farm sectors in the rural areas.
Problem statement
The yield as well as farm income is the essential part for crop diversification for the farmer of an agricultural based economy like West Bengal. Normally, the farmers diversify farm enterprises to meet the cash requirements of the family and to mitigate risk associated with mono-cropping, depending on conventional wisdom over the years. The crop diversification in the state is also considered with greater emphasis from the view point to price response, market infrastructure, availability of resources and public interventions (price and credit policies of farming business, research and development in farming activities, etc.) in agriculture. The judicious crop mix has facilitated increased farm incomes. It has also contribution towards the utilization of under employed resources to mitigate seasonal and under unemployment of rural labour force. The crop diversification has also helped to reduce risks and uncertainties in crops yields due to climatic and biological vagaries. Thus the study was conducted to analyze the extent of crop diversification at different levels of farm size as well as crop growing seasons in West Bengal for both inorganic and organic farming systems, commonly followed by the farmers in the state.
Objectives
The specific objectives of this study are:

i. To visualize the area under different crops of inorganic farms vis-à-vis organic farms ii. To investigate the degree of crop diversification under inorganic farms vis-à-vis organic farms

iii. To investigate the changes, e.g. cropping intensity and net income of the farms due to crop diversification under inorganic farms vis-à-vis organic farms.

Data base
The data for the analysis consisted of area under different crops grown at farms of different sizes of both inorganic and organic farming system in the sample districts of West Bengal during 2005-06, 2006-07 and 2007-08.
Methodology
Jalpaiguri district from the northern part and North 24 Parganas district from the southern part of the state are selected for this study.
Types and Sources of data

The study is mainly based on primary data. Primary data related to the socio-economic characteristics of the farmers such as family size, economically active worker in the family, land size, status of irrigation, livestock owned and area allotted under different crops, crop yields, prices of the farm produce, etc were gathered from the sample farmers. Different published and unpublished materials were also reviewed.
3.3. Sampling design and Methods of data collection

For the study, stratified random sampling (SRS) with probability proportionate to size class (PPS) was employed. Jalpaiguri and North 24 parganas districts were selected purposively since they have both Government and Non-Government organization (NGO) in the field of promotional activities of organic agriculture. In addition, the districts have vegetable dominated-mixed farming system and smallholder farmers in these districts are exposed to various types of risks. A three stage purposive sampling procedure was then employed to select 240 respondents (120 inorganic respondents + 120 organic respondents) from the districts. In the first stage, 4 blocks (2 from each district) were selected purposively. In the second stage, 4 villages (1 from each block) were selected. Two villages of NGO activity area were selected randomly. On the other hand, as there was only one village each under organic management system being implemented by the Government in both the districts, hence both the villages were selected. In the third stage, 60 sample households (30 inorganic households + 30 organic households) were selected from each village using probability proportionate to size class (PPS) method. The data for the study were collected with the aid of a pretested survey schedule. In addition, information was obtained from discussions with agricultural extension workers and other farmers outside the formal sample to supplement the data.
3.4. Methods of data analysis

In order to address the objectives, descriptive analysis and statistical analysis were employed in this study.

Descriptive statistics

Descriptive statistics was employed to analyze and present the socio-economic characteristics of sample households and to rank farmers’ response with regard to certain questions. In addition, prioritizing factors influencing farm household decisions were made using simple descriptive statistical tools. Descriptive statistics involved the calculation of frequency, percentages, etc.

Statistical analysis
There are different indices used to measure crop diversification. These indices measure the extent of dispersion and concentration of different crops at a given point of time and space by a single quantitative indicator. These indices are calculated in this study for 3 years time period from 2005-06 to 2007-08 for each farming system, i.e. inorganic and organic for both Jalpaiguri and North 24 Parganas districts of West Bengal. For estimating the extent of crop diversification three consecutive years data were collected from primary source during the period of 2005-06 to 2007-08 regarding area under various crops. To analyze, crop diversification at the level of farm size in different districts of West Bengal following most common indices of diversification measures were used: Crop diversification measures

To measure the extent and nature of crop diversification, four measures viz. Herfindahl Index (H.I.), Simpson Index (S.I.), Entropy Index (E.I.) and Modified Entropy Index (M.E.I.) were worked out as follows:

Ai Pi = ----------- n ∑ Ai i=1

where,

Pi = proportion of ith crop Ai = area under ith crop (ha)

n ∑ Ai = total cropped area (ha) i=1 i= 1, 2, 3, ..........., n (number of crops)
3.4.1. Herfindahl Index (H.I.) n H.I. = ∑ Pi2 i=1 where, n = total number of crops Pi = proportion of ith crop

Herfindahl index (H.I.) defined as the sum of squares of all n proportions is a measure of crop concentration. This measure is used to measure crop diversification on acreage proportion. The value of “H.I.” varies from zero to one. It takes the value of one when there is complete specialization and approaches zero when the number of enterprises is more showing perfect diversification. But for direct interpretation of results, crop diversification index was worked out:

3.4.2. Crop Diversification Index (C.D.I.) (also called Simpson Index, i.e. S.I.) C.D.1. = 1 - H.I. where, H.I. = Herfindahl Index

Simpson Index is given by the formula: n S.I. = 1 - ∑ Pi2 i=1 where, n = total number of crops Pi = proportion of ith crop

The S.I. has direct relationship with diversification. The zero value of S.I. indicates specialization and moving towards one showing increase in number of enterprises. It is also measured on acreage proportion. However, this S.I. is most widely used instead of H.I. for the measure of diversification.

3.4.3 Entropy Index (E.I.)
Entropy Index is regarded as an inverse measure of crop concentration having logarithmic character. Entropy Index is calculated by the following formula: n E.I. = ∑ Pi log1/Pi i=1 n or E.I. = - ∑ Pi log Pi i=1

where, n = total number of crops Pi = proportion of ith crop

This measure is applied on acreage proportion to measure the crop diversification. It has direct relationship with diversification. The index would increase with the increase in diversification and it approaches zero when there is perfect concentration, i.e., when Pi = 1. The upper bound of the index is logn. The upper limit of the entropy index is determined by the base chosen for taking logarithm and the number of crops. The upper value of the index exceeds one, when the number of total crops is higher than the value of the logarithm’s base and its value is less than one when the number of total crops is less than the value of the logarithm’s base. Hence, the major limitation of Entropy Index is that it does not give standard scale for assessing the extent of diversification.

3.4.3.1 Modified Entropy Index (M.E.I.) Modified Entropy Index is used to overcome the limitation of Entropy Index by using variable base of logarithm instead of fixed base of logarithm. It is computed by the formula given below: n M.E.I. = ∑ Pi logn1/Pi i=1 n or M.E.I. = - ∑ Pi lognPi i=1 E.I. or M.E.I. = -------- logn where, n = total number of crops Pi = proportion of ith crop

Here, the important fact is that logarithm base is shifted to n number of crops. This index too is bounded by the number zero and one. The index assumes lower limit zero when there is complete concentration, and upper limit of one in case of perfect diversification. This index measures diversification given the number of crops and the index is not sensitive to the changes in the number of crops.

These indices based on area under selected vegetables and cereal crop, i.e., brinjal, lady’s finger, tomato, cauliflower, cabbage, cowpea, bean, pointed gourd, bitter gourd, bottle gourd, ridge gourd, radish, carrot, spinach, kalmishak, amon paddy, potato and chilli have been calculated.

4. Results and Discussions

The major findings of the study are discussed in the following sections. The first section deals with the socio-economic characteristics of the sample farmers in the two districts while the second section describes the crop choice and trend in crop diversification in the study area. The third section deals with the pattern of crop diversification in West Bengal. The fourth section presents and discusses the indices of crop diversification using the most popular four (H.I., S.I., E.I., and M.E.I.) indices of crop diversification measurement. Finally, attempt has been taken to measure the impact of crop diversification in relation to cropping intensity followed by net farm income. An attempt has also been taken to understand the relative importance of different crops for diversification with respect to area allotted to different crops in an agricultural year.

4.1. Socio-economic characteristics of the sample households
The average family size of sample inorganic farms (4.42 persons) was found a little lower over sample organic farms (4.82 persons) across the study area. Around 45% and 41% members to the total members of each family was considered as active workers in inorganic and organic sample households, respectively. Though, the number of active members was same in absolute term (2 persons) in both the farming system. The overall percentage of irrigated land under inorganic and organic farming system was observed as 73.50 % and 79.52 %, respectively. This information suggests that irrigation facility or availability did not influence the farmer to adopt a particular system of farm operations

Table 2: Summary statistics of socio-economic profile of the sample households

Sl Particulars Inorganic farm Organic farm
1 Family size 4.42 4.82
2 Economically active worker 2.00
(45.25) 2.00
(41.49)
3 Land area 0.57 0.10
4 Irrigated area 0.42
(73.68) 0.08
(80.00)
5 Livestock population 2.33 4.23
6 Family income 45,873.09 48,377.93
7 Farm income 38,413.09
(83.74) 42,387.93
(87.62)
Figures in parenthesis indicate per cent to corresponding family size, land area and family income. Based on: Field survey

. It has been found that average number of livestock was 2.33 per inorganic farm against 4.23 per organic farm across the study area. This information suggests that there is a direct and subtle relationship between promotion of organic farming and livestock population. Without the increase in livestock population, scaling up of organic farming becomes difficult. The inorganic farmers earned 83.74% of annual family income from farm income source, whereas in the organic farming system, 87.62% of the family income came from farm income source. Thus, the discussion has focused on the aspect that farming was the main earning source of inorganic and organic sample households. So, it may be concluded that all the sample households in the study area were primarily farmers by profession.

4.2. Crop choices and trend in crop diversification
The farms under both inorganic and organic system are commonly producing vegetables and cereal crop amon paddy. Amon paddy is producing in inorganic farms as preferential crop and vegetable crops are producing with higher preference in organic farms. The areas allocated to major crops in the study areas for three production years (2005-06 to 2007-08) are presented in Table 7. The data is obtained from the sample farmers. The area allocated for cereal crop remains nearly the same indicating no significant increase in area allocation for this crop. The area under vegetables has increased at least something during the study period. However, the increase in area allocated for vegetables indicates that farmers are tending to be commercialized through time.
On the basis of overall observation, there appears an increasing trend in diversification in the study areas. The analysis of the trend in diversification may help to know risk-aversion behavior of smallholder farmers. As long as crop diversification dominates the literature as a dominant risk management strategy, risk-averse smallholder farmers are characterized by diversified farms. Hence, higher diversification index indicates higher risk aversion. Crop diversification as measured by land under each crop has shown an increasing trend for the 2005-06 to 2007-08 production periods. There have been changes in the pattern of agricultural diversification at the district level also. Farmers keep on diversifying their farms and the usual notion of crop diversification as a risk management practice is also approved in the present study. The study also found that farmers in organic farming system are tending to be risk-averse over inorganic farming. The major contribution to increase farm diversification is also believed to be the increase in land fragmentation in the study areas. This has important implication to technology adoption behavior of smallholder farmers.
4.3 Pattern of crop diversification

The different forms of crop diversification are crop rotation, mixed cropping and intercropping. Crop rotation is believed to reduce adverse incidence and increase soil fertility. Intercropping might allow efficient use of land by growing more crops together. Farm diversification is growing different crops on different plots hence reduce risk of losing crops from all fields. The advantage of intercropping may also entail supplementary relationship which calls for physical support of one crop to the other crop and erosion control through providing continuous leaf cover over the ground surface. However, intercropping is the most common form of enterprise diversification in West Bengal.

It has been observed during study that significant proportion of the sample farmers practice crop rotation and intercropping. The major crop rotation practices are summer vegetables followed by cereal, leguminous vegetables, cucurbitaceous vegetables, leafy vegetables and spice in inorganic farms. In the organic farms, summer vegetables are cultivated followed by leguminous vegetables, cucurbitaceous vegetables, winter vegetables, root vegetables, leafy vegetables, tuber crop, spice, etc. The survey result also indicated that intercropping as a form of diversification plays significant roles. About 83 % of the respondents indicate that their reason for intercropping is to reduce risk of losing yield from crop due to specialization. Other reasons for intercropping were shortage of land and to increase soil fertility by intercropping with vegetables and leguminous crops. This result indicates that farmers in the study area are much concerned about land scarcity, soil fertility and risk management. Under intercropping / mixed cropping system, more than two vegetable crops were grown in the study area.

The result related to the average number of farm plots operated by a household indicates that a household on average operates about 3 farm plots. This indicates that farm land fragmentation is persistent in the area. A typical farmer grows 6 and 11 crops in an agricultural year under inorganic and organic farming system, respectively. If number of enterprises grown by a farmer is taken as a measure of crop diversification, it tells that the farmers are diversifying their production.

4.4. To investigate the degree of crop diversification through crop diversification indices

Crop diversification indices are important tools for measuring the extent of diversification of crop cultivation. In the present study, a variety of crop diversification indices are used, viz., Herfindahl Index (H.I.), Crop Diversification Index / Simpson Index (C.D.I. / S.I.), Entropy Index (E.I.) and Modified Entropy Index (M.E.I.). All these four different types of indices are calculated for measuring the diversification level for each farm size class of the two farming system (i.e. Inorganic and Organic). However, for analysis we have used Herfindahl, Simpson and Modified Entropy Indices as shown in Table 3, Table 4 and Table 5.

Herfindahl Index (H.I.)
So far as crop diversification is concerned, it is evident from the Table 3 that the level of diversification is prominent for all size classes of farmers in West Bengal due to favourable agro-climatic condition of the state. The level of crop diversification, as measured through H.I. is higher for all the farm size classes under organic farming system than inorganic farming system. It is also evident from the Table 3 that maximum diversification has been occurred in sub-marginal farms followed by marginal and small farms in inorganic farming system. Interestingly, a reverse picture of crop diversification has been found in organic farming system. In this system, small farms are diversified more followed by marginal and sub-marginal farms.
Turning to the growing seasons of crop cultivation, it has been observed that maximum diversification occurred during rabi season in both inorganic and organic farming system. Another observation is that despite more diversification in summer season than kharif season in inorganic farms, more diversification was observed in kharif season than summer season in organic farms.
Table 3: Farm size-wise vis-à-vis growing season-wise Herfindahl Index (H.I) in West Bengal (2005-06 to 2007-08)

Farm size
(in ha) H.I. Growing season H.I. Overall Inorganic farms
Up to 0.5 0.173 Summer 0.148 0.126
0.51 – 1.0 0.212 Kharif 0.317
1.01 – 2.0 0.221 Rabi 0.112 Organic farms
Up to 0.5 0.105 Summer 0.104 0.068
0.51 – 1.0 0.071 Kharif 0.073
1.01 – 2.0 0.062 Rabi 0.065 Source: field survey

Simpson Index (S.I.)
Simpson Index on acreage proportion in different size classes under inorganic and organic farming system in West Bengal is presented in Table 4. The level of crop diversification, as measured through S.I. is a replica of crop diversification measured by H.I. It is clear from the Table 4 that S.I. moved in narrow range in all the farms of different size classes under both inorganic and organic farming system. The value of the index is ranged from 0.778 (small farm) to 0.827 (sub-marginal farm) and 0.895 (sub-marginal) to 0.938 (small) for inorganic and organic farming system, respectively showing towards diversification.

The estimated S.I. on the basis of growing season of different crops indicates exact same trend for both inorganic and organic farming system, where maximum diversification occurred in rabi season followed by summer and kharif season in inorganic farms. The second and third positions in respect of crop diversification were occupied by kharif and summer seasons, respectively in organic farms. The lowest diversification was observed in kharif season under inorganic farming system.
Table 4: Farm size-wise vis-à-vis growing season-wise Simpson Index (S.I.) in West Bengal (2005-06 to 2007-08)

Farm size
(in ha) S.I. Growing season S.I. Overall Inorganic farms
Up to 0.5 0.827 Summer 0.852 0.874
0.51 – 1.0 0.779 Kharif 0.683
1.01 – 2.0 0.778 Rabi 0.888 Organic farms
Up to 0.5 0.895 Summer 0.896 0.932
0.51 – 1.0 0.929 Kharif 0.927
1.01 – 2.0 0.938 Rabi 0.935 Source: field survey Modified Entropy Index (M.E.I.)
The computed values of Modified Entropy Index (M.E.I.) for the different size classes of inorganic and organic farming systems in West Bengal are presented in Table 5. The Table shows that in inorganic farming system, the diversification index varied from 0.874 (small farms) to 0.951 (sub-marginal farms) during the period 2005-06 to 2007-08. Sub-marginal farms registered higher value in the diversification index during the 3 years period, whereas marginal and small farms registered comparatively lower value. All the farms of different size classes under organic farming system registered prominent diversification index during the study. The largest diversification was in small farms under organic farming system with a M.E.I. of 0.989. The values of index, estimated through M.E.I. method have strengthened the estimates of crop diversification following S.I. method for summer, kharif and rabi season in both inorganic and organic farming system.

Table 5: Farm size-wise vis-à-vis growing season-wise Modified Entropy Index (M.E.I.) in West Bengal (2005-06 to 2007-08)

Farm size
(in ha) M.E.I. Growing season M.E.I. Overall Inorganic farms
Up to 0.5 0.951 Summer 0.943 0.858
0.51 – 1.0 0.886 Kharif 0.779
1.01 – 2.0 0.874 Rabi 0.975 Organic farms
Up to 0.5 0.902 Summer 0.948 0.962
0.51 – 1.0 0.964 Kharif 0.955
1.01 – 2.0 0.989 Rabi 0.976 Source: field survey
However, based on the above estimations, the overall inference in respect of crop diversification indicated that maximum diversification occurred in sub-marginal farms followed by marginal and small farms under inorganic farming system. This indicates that the larger farm area under inorganic system inclined to specialized farming. The trend of diversification was more in rabi season followed by summer and kharif season under this farming system. As maximum area of the farm was used for cultivation of most important staple crop, i.e. amon paddy, of the state in kharif season under inorganic farming system, there was less diversification in this crop growing period. On the other hand, small farms were practiced more diversification in crop cultivation followed by marginal and sub-marginal farms under organic farming system. This may be the outcome of larger area of small farms as compared to other two size classes of farm, i.e. sub-marginal and marginal farms. A large number of vegetables cultivation facilitated higher degree of crop diversification in small farms. It has also been observed that maximum diversification occurred in rabi season followed by kharif and summer season under this farming system. The observation is that, though inorganic farms were more diversified in summer season than kharif season, the organic farms were diversified more in kharif season than summer season. This was happened due to cultivation of vegetables with priority instead of cereal crop, i.e. amon paddy in organic farms.
The motives of crop diversification were reduction of weeds-infestation, multiplication of insect-pests and diseases, etc. Due to depletion of underground water, the advantages of residual moisture in the soil after the monsoon is utilized in rabi season also. Moreover, the climatic condition of this season is more favourable for almost all vegetable crops that are dominant in the state. So, maximum diversification of crop cultivation was observed in rabi season in both inorganic and organic farming system.
4.5. To investigate the changes, e.g. cropping intensity and net income of the farms due to crop diversification therein.

More diversification of the farm enterprises leads higher cropping intensity of the farms followed by higher net farm income. Table 6 exhibits the corresponding cropping intensity and net farm income of various farms of different size classes under both inorganic and organic farming systems in West Bengal. It has been observed that the cropping intensity of organic farms was higher as compared to cropping intensity of inorganic farms. This was because of the higher level of diversification in organic farming system. The result reveals that 15 per cent increase in cropping intensity has been originated in organic farms over inorganic farms. This increased cropping intensity facilitated a higher income of Rs. 17,811.65 per hectare in organic farms over income from per hectare inorganic farm. Though, per hectare production in organic farms was lower than inorganic farms, the price premium (2.53 % for potato to 87.22 % for radish) for organic farms products influenced this higher income.

Table 6: Farm size-wise cropping intensity vis-à-vis net income in West Bengal (2005-06 to 2007-08)

Farm size
(in ha) Inorganic farms Farm size Organic farms Cropping intensity Net income
(Rs / ha) Cropping intensity Net income
(Rs / ha)
Up to 0.5 203 92,162.84 Up to 0.5 217 114,117.26
0.51 – 1.0 197 91,388.40 0.51 – 1.0 212 108,462.57
1.01 – 2.0 191 90,684.69 1.01 – 2.0 211 106,873.19
Overall 198 91,722.63 Overall 213 109,534.28
Difference between inorganic and organic farms
(Inorganic farms – Organic farms)
Farm size
(in ha) Cropping intensity Net income (Rs / ha)
Up to 0.5 - 14 - 21,954.42
0.51 – 1.0 - 15 - 17,074.17
1.01 – 2.0 - 20 - 16,188.50
Overall - 15 - 17,811.65 Source: field survey

4.6. To visualize the area (Ai) under different crops of inorganic farms vis-à-vis organic farms of diversification in the area.

Land allocation is an indicator of importance of crops, in respect of crop diversification. So, our last but not the least task was to analyze the allotted area for different crops under consideration in the study areas. This analysis helped to understand the dominance of crop / crops for diversifying the farm enterprises in both inorganic and organic farming systems. The analysis has been done for all the farms of different size classes in the study areas and the results are presented in Table 7. This Table shows that lady’s finger and cauliflower occupied first and second position, respectively in terms of area allotted in the diversified sub-marginal farms under inorganic farming system during the study period. Whereas, amon paddy occupied first position in marginal and small farms. The second position for diversification was occupied by lady’s finger and potato by marginal and small farms, respectively under inorganic farming system.

From Table 7, it has also been observed that cauliflower and bitter gourd got first preference as diversified organic farm enterprises in sub-marginal and marginal farms, respectively. The reason for this selection was higher price premium (24.80 % for cauliflower and 12.03 % for bitter gourd) of organic farm products. The small farmers of organic farming system preferred cowpea, kalmishak and chilli as first choice for a diversified farming. Cowpea was the selection for maintaining the principles of organic farming as inclusion of leguminous crop in the cropping sequence. The rest two crops were selected for higher price premium (66.84 % for kalmishak and 10.72 % for chilli) during the period of study. The second position was occupied by bean as leguminous crop in sub-marginal and marginal farms in organic farming system as per principles of organic farming. Of course, bean fetched higher income with price premium (12.37 %) for organic farmers. The small farmers preferred amon paddy as second choice for crop diversification in their organic farms as the most important staple foods for consumption in West Bengal. All other crops occupied the position or ranking depending upon the price premium during the period of study.

Table 7: Allocation of area (Ai) under different crops in the agricultural year 2005-06 to 2007-08 in West Bengal
(Area in hectare)
Crops Inorganic Farm Organic Farm SM Rank M Rank S Rank SM Rank M Rank S Rank Ai Ai Ai Ai Ai Ai
Brinjal 0.140 5 0.007 7 0.021 4
Lady’s finger 0.210 1 0.240 2 0.007 6 0.014 5 0.014 6
Tomato 0.009 4 0.020 2
Cauliflower 0.120 2 0.140 5 0.023 1 0.015 4 0.021 4
Cabbage 0.080 4 0.004 7 0.007 7 0.014 6
Cowpea 0.250 3 0.009 4 0.014 5 0.027 1
Bean 0.210 4 0.020 2 0.020 2 0.021 4
Pointed gourd 0.070 6 0.015 4 0.014 6
Bitter gourd 0.100 5 0.020 2 0.030 1 0.021 4
Bottle gourd(pc) 0.140 3 0.008 5 0.017 3 0.021 4
Ridge gourd 0.050 6 0.210 4 0.003 8 0.014 6
Radish 0.210 4 0.003 8 0.007 7 0.020 5
Carrot 0.070 5 0.010 3 0.014 5 0.022 3
Spinach 0.100 3 0.002 9 0.003 8 0.010 7
Kalmishak 0.100 3 0.007 6 0.010 6 0.027 1
Amon 0.500 1 1.000 1 0.014 5 0.023 2
Potato 0.140 3 0.420 2 0.003 8 0.010 6 0.021 4
Chilli 0.110 4 0.003 8 0.017 3 0.027 1
Gross Cropped Area(∑ Ai) 0.730 1.300 2.580 0.130 0.233 0.338
Net Sown Area 0.360 0.660 1.350 0.060 0.110 0.160
Cropping Intensity (C.I.) 203 197 191 217 212 211
Source: Field survey (Note: SM = Sub-marginal, M = Marginal, S = Small, Ai = Allotted area in ha)
5. Concluding observations and Policy implication
Crop diversification has multidimensional importance. The strategy of crop diversification helps to mitigate risk in crop production and plays a vital role for ensuring food security. So, the present study was conceived to assess the trend and patterns of crop diversification at farm level in West Bengal state. Large number of farmers’ practices crop rotation and mixed / intercropping in the study areas for reducing disease and pest infestations, improving soil fertility and reducing risks in their scarce land resource. This indicated that farmers are tending to be more risk-averse and this will have an implication in technology adoption and agricultural development in the area.

On the basis of measurements of crop diversification indices, it was concluded that crops were more diversified in organic farming system towards high value crops like vegetables due to price premium. The crop diversification in rabi season facilitates farming business against depletion of underground water. The lower level of crop diversification in the inorganic farming system indicated comparatively lower level of price advantages and marketing infrastructure. A modified entropy index was considered as an approach to measure crop diversification based on area in hectare under each crop. The estimate indicates that price premium is found to be the most important factors that significantly influence crop diversification.

Policy implications and Future research

The above discussions substantially pointed out that crop diversification able to provide optimum level of production in farming sector. So, based on the empirical evidences, the following recommendations are suggested to promote crop diversification which will ensure a sustainable level of farm returns for the farmers, avoiding risks and unwanted level of production, in West Bengal.

i. There is a positive relationship between irrigation availability and crop diversification. Underground water is depleting. So, policy makers need to devise a way of intensive water harvesting for rainfed areas in particular of the state. This might improve farmers’ technology adoption decisions. ii. Attention should be given to design strategies so that farmers might diversify their production to high value crops leaving small land for staple cereal crops. iii. Production technologies for alternative crops in kharif season should be provided to overcome the consequences of flood and drought, which are frequent in the state. iv. Remunerative minimum support price (MSP) for each vegetable and other alternative crop should be declared prior to growing season on regional basis.
v. Agricultural products are perishable in nature and farmers are primarily small and marginal in categories. So, easy access to market immediately after harvesting needs to be given attention for sale of the products with profitable price. vi. Harvesting time of farm products is limited and same for each crop. Thus, larger supply of farm products at a given point of time provide lower price for the farmers. So, easy accessibility to warehouse, cold storage, etc. should be given importance in marketing of farm products to check distress sale. At the same time, provision should be made for production-advance for the smallholder share-croppers from warehouse, cold storage, etc. vii. Crop diversification in farming business is very useful investment for obtaining optimum yield as well as income. On the other hand, inclusion of livestock enterprises in a multi-tier farming system not only minimizes the risks in the farming but facilitated higher farm income also. Moreover, it contributes significantly to efficient use of family labour. So, future research in the area of agricultural production strategy should integrate livestock management in the estimation model.