Exploring the impact of diversification on agricultural commercialisation in North Karnataka, India: K-means clustering and regression analysis approach
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Keywords:
Crop commercialisation index, Farm households, Gross irrigated area, Herfindahl hirschman index, Regression adjustmentAbstract
This study delves into the pivotal role of agricultural diversity in shaping the commercialisation of agriculture in northern Karnataka, India. While diversification is often viewed as a risk mitigation strategy, its influence on the transition toward market driven agriculture is critical for rural transformation. The research was conducted across two distinct regions, Cluster-I (Dharwad and Gadag) and Cluster-II (Belagavi and Bagalkote) based on the Gross Irrigated Area (GIA). 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 Commercialisation Index (CCI) to assess commercialisation. The clustering results revealed stark contrasts between the two regions, with Cluster-I exhibiting higher level of crop diversification and lower-level commercialisation (HHI: 0.45) and Cluster-II demonstrating more market-oriented farming practices coupled with a lower degree of diversification (HHI: 0.66). To determine the causal impact, a Regression Adjustment (RA) model was employed, which confirmed that diversification significantly enhances commercialisation levels. The study highlights that diversification and commercialisation are complementary pathways for sustainable agricultural development. Therefore, region-specific policies focusing on irrigation expansion, promotion of diversified cropping systems, market infrastructure and institutional support are essential for strengthening resilient and market-oriented agriculture in North Karnataka.
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