Is commercialization and diversification of agriculture promotes Indian agriculture and effects of diversification strategies on the strategic management process?
Commercialization and diversification of agriculture in India can promote agricultural growth by increasing income opportunities for farmers and enhancing overall farm productivity. Diversification strategies within the agricultural sector, such as crop rotation, intercropping, and livestock integration, can mitigate risks associated with mono-cropping and improve resilience to changing market conditions. Effective strategic management processes that involve market research, resource allocation, and technology adoption are essential for successful implementation of these diversification initiatives and ensuring sustainable agricultural development in India.
Agricultural commercialization and diversification involve the gradual replacement of integrated farming systems by specialized enterprises for crop, livestock, and poultry and aquaculture products. Commercialization on product side includes increase in marketable/marketed output relative to production, changes in product-mix, within crop sector in favour of commercial crops, both in terms of area and production, diversification towards different sub-sectors of agriculture, viz., livestock, poultry and fisheries. Commercialization of agriculture mainly benefited big landowners and British planters. Small farmers found it difficult to adopt modern techniques. They started growing commercial crops but failed due to lacking resources and expertise. This led to indebtedness and loss of land among many small farmers. Diversification offers a wider choice in the production of crops in the given area. The shift in cultivation from traditional, less-remunerative crops to higher-value crops leads to higher incomes for the producer. The commercialization of agriculture means that the agricultural crops and goods are produced by the peasants for sale in the market and not for their own consumption. Commercialization of agriculture in India began during the British rule; The British had come to India as traders. Promotion of integrated farming system approach requires synergistic blending of crops, horticulture, dairy, fisheries, poultry, etc. Micro- irrigation along with the nutrient application can be highly efficient and priority should be given to empower farmers with micro- irrigation. Crop diversification helps in minimizing the alleviating second generations problem such as soil degradation, soil salinity, insect-pest and disease insurgence, environmental pollution, decline in farm profit, nutrient imbalance, climate change etc. A diversification strategy is a method of expansion or growth followed by businesses. It involves launching a new product or product line, usually in a new market. It helps businesses to identify new opportunities, boost profits, increase sales revenue and expand market share.A diversification strategy leads to growth and profitability (20%) and a strong capital structure to cover liabilities (26%).Vertical diversification, also known as vertical integration, is when you expand forward or backwards in your supply chain or production process. Horizontal diversification is when your business expands into products or fields that are somewhat unrelated to current business activities.