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P. Parthasarathy Rao Dharmendra Kar

. . Diversification of agriculture:Schematic.

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P. Parthasarathy Rao Dharmendra Kar

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    3. Facets of Agricultural Diversification Shift from farm to non-farm activities Shift to high value commodities/enterprises Use of resources in diverse and complementary activities

    4. Definition of Diversification for this study Spatial sub-division of districts based on diversification towards HVCs Nature and speed of diversification Role of urbanization determining nature and speed of diversification Andhra Pradesh: Case study Implications for policy and regional planning

    5. Demand side factors Population growth Income growth Urbanization Change in taste and preferences Export potential

    7. Relative importance by level of diversification: 1998

    8. Selected indicators by level of diversification: 1998

    12. Relative importance of urban and other district groups: 1998

    13. Selected indicators of urban and other districts: 1998

    21. Concluding remarks HVC’s account for > 50 % of agricultural production in 56 districts and < 25 % in 86 districts Milk and poultry meat had the fastest growth rate among HVCs Urbanisation has a significant influence on diversification towards HVCs , particularly poultry meat and fruits Other factors: road density, small farms, improved technology, fodder availability and rainfall positively influenced diversification Tractor density, HYV area and irrigation negatively influenced diversification

    23. Andhra Pradesh farming sector: Facets of the crisis Yield stagnation in traditional crops Food self-sufficiency achieved Accounts for 35% of rice procurement in India Relentless pressure on natural resources Declining water tables Unsustainable rice cropping Excessive use of inputs Fertilizers, pesticides, water, electricity Newer pressures from trade liberalization Prices, quality, sanitary and phytosanitary (SPS) measures Rising rural unemployment Decline in rural per capita incomes Inadequate access to formal credit Poor rural and marketing infrastructure Profound disquiet in rural areas AP has dubious distinction of highest farmer suicides High levels of out-migration to urban areas Highest incidence of child labor

    32. HVCs: Challenging policy terrain Marketing Domestic Export Processing Contract farming Case study: Gherkins Credit Infrastructure

    38. Pro-HVC policy interventions Pricing water Building efficient marketing networks Implement Model Marketing Act Dismantling government monopoly Increasing investments in infrastructure Roads, cold storage, bulk coolers Foster improved linkages between rural-urban markets Emphasizing vertical integration thru’ contract farming Increase enforceability Harness private sector innovations in food processing and marketing Adding value thru’ processing Simplify procedures for setting up food processing industries Enhancing access to formal credit Expand crop/rainfall insurance schemes Enabling public-private partnerships Extension

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