AGRICULTURE DIVERSIFICATION IN SOUTH ASIA: PATTERNS, DETERMINANTS AND POLICY IMPLICATIONS

The South Asian countries are gradually diversifying with some inter-countryvariation in favor of high value commodities, namely fruits, vegetables, livestock andfisheries. Agricultural diversification is strongly influenced by price policy, infrastructuredevelopment (especially markets and roads), urbanization and technologicalimprovements. Rainfed areas have benefited more as a result of agriculturaldiversification in favor of high value crops by substituting inferior coarse cereals.Agricultural diversification is also contributing to employment opportunities inagriculture and increasing exports. The need is to suitably integrate production andmarketing of high value commodities through appropriate institutions. Market reforms indeveloping and strengthening desired institutions through required legal changes wouldgo a long way in boosting agricultural growth, augmenting income of small farm holdersand promoting exports.