Exploring the Impact of Diversification on Agricultural Commercialization in North Karnataka, India: A K-means Clustering and Regression Analysis Approach

Harshitha H C

doi:10.56093/ijas.v96i6.169526

Authors

Harshitha H C University of Agricultural Sciences, Dharwad

https://doi.org/10.56093/ijas.v96i6.169526

Keywords:

Agricultural Commercialization, Diversification, Clustering

Abstract

This study delves into the pivotal role of agricultural diversity in shaping the commercialization of agriculture in North Karnataka, India. Specifically, it explores how varying degrees of crop diversification influence the shift toward market-driven agriculture, which is critical for rural development and economic sustainability. The research was conducted across two distinct regions: Dharwad and Gadag (Cluster-I), representing areas with lower agricultural commercialization and Belagavi and Bagalkote (Cluster-II), which are characterized by higher levels of agricultural commercialization. Data were gathered from 240 farm households through meticulously designed personal interviews during the 2022-23 agricultural season. The analysis employed a combination of descriptive statistics, K-means clustering and the Herfindahl-Hirschman Index (HHI) to quantify diversification, as well as the Household Crop Commercialization Index (CCI) to assess commercialization. The clustering results revealed stark contrasts between the two regions, with Cluster-I exhibiting higher level of crop diversification and lower-level commercialization (HHI: 0.45) and Cluster-II demonstrating more market-oriented farming practices coupled with a lower degree of diversification (HHI: 0.66). To further validate these findings, the study utilized the Regression Adjustment (RA) model, which highlighted a significant positive effect of diversification on commercialization. The Average Treatment Effect on the Treated (ATET) was 5.34 (Z-value = 6.47, p-value = 0.00) and the Potential Outcome Mean (POM) for specialized households stood at 58.70 (Z-value = 67.90, p-value = 0.00). These results underscore the transformative power of crop diversification in driving agricultural commercialization and offer valuable insights for policymakers aiming to foster sustainable agricultural practices in North Karnataka.

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