CROP DIVERSIFICATION IN ODISHA: EMPIRICAL INSIGHT FROM PANEL CORRECTED STANDARD ERROR (PCSE) TECHNIQUE

Needs for agricultural output have been increasing day by day, and diversifying agriculture towards more competitive and high-value commodities is viewed as a critical approach for tackling the issue of agricultural output needs as a result of the huge unit of rising population. In the present study, the level of crop diversification was evaluated using Simpson's index of diversity which is calculated based on the proportion of gross cropped area under different crops cultivated in 30 districts of Odisha between the time period of 1995-2019. It has been observed crop diversification is high in tribal populated districts of south Odisha. Even though the growth of crop diversification in the state is sluggish but the pace of diversification in the districts Boudh, Subarnapur, Puri, Jharsuguda, and Sundargarh is very impressive. An unbalanced panel data model was used to identify factors affecting farm household crop diversification by using the Panel Corrected Standard Error approach (PCSE). The research outcomes reveal that fertilizer consumption, irrigation intensity, and HYV seed rice promote monocropping culture, whereas access to credit, cropping intensity, and rural roads positively influence crop diversification. Keywords: Agriculture, Crop Diversification, Simpson Index, Panel data model, PCSE JEL code: Q15, Q19, Q24