Farm Harvest Price Induced Crop Diversification in Satara District

The present study was carried out in Satara district to estimate the growth rates of area, production and productivity of important crops to examine the extent of crop diversification and to estimate the monetary returns of cropping pattern based on Farm Harvest Prices in Satara district. Nineteen major crops were selected for study. Satara district was selected purposively. The secondary data on area, production, productivity and farm harvest prices of important crops and other related parameters were obtained for the last 30 years. The collected data were analyzed to work out the growth rates, trends, shift in area and monetary returns. The compound growth rates of area, production and productivity of important crops were calculated by using the exponential growth function. Moreover, the Herfindahl index and Modified Entropy indices were computed at different points of time. The period wise (Decade) monitory returns from only crop component were estimated by taking in to consideration the farm harvest prices (FHP) and Minimum Support Prices (MSP) of the respective crop for the respective year at current prices. It was revealed that, Rabi jowar and Mung has non-significant growth in area, production and productivity over the period of time. Whereas, Area, Production and productivity of Wheat, Sugarcane, Gram, Soyabean and Maize increased significantly. The area, production and productivity of Cotton,Ragi, Kharif jowar, Sunflower, Tur and Urid has shown decreased growth over the period of time. Whereas in Kharif groundnut, area and production shows declined growth rate over the period of time. The values of Modified Entropy index were near to one, which indicated diversification. Soyabean, Kh. Jowar, Cotton, Safflower, Sunflower and Gram has retained its area to the extent of 94, 72, 68, 68,65 and 69 per cent, respectively of the previous year’s area in the current year. Sugarcane has retained its previous years 54.42 per cent area in the current year and its remaining area is diverted towards Rb. Jowar (32.9 %), Kh Rice (10.47%) and Maize (2.17%). Maize has retained its previous years 54.34 per cent area in the current year and its remaining area is diverted towards Sugarcane (45.65%). Wheat has retained its previous years 53.58 per cent area in the current year and its remaining area is diverted towards Kh Rice (28.32 %), Sugarcane (11.93%) and Gram (6%). During 2010- 2019, monetary returns obtained are high with higher diversification except Sesamum, Ragi, Safflower, Sunflower, Cotton and Kharif Jowar. From this crops higher monetary returns were obtained in 1990-1999 and 2000-10. The area, production and productivity of soyabean is increased significantly by 11.57 per cent, 13.69 per cent and 1.90 per cent respectively. The area under Sugarcane is increased by 2.65 per cent and production of Sugarcane increased by 3.14 per cent significantly. Also productivity is increased by 4.83 per cent significantly. The diversification from subsistence crop to commercial crops took place in Satara district. The crops viz., Soyabean, Kh. Jowar, Cotton, Safflower, Sunflower and Gram has retained its area to the extent of 94,72, 68, 68,65 and 69 per cent, respectively of the previous year’s area in the current year. However, major shift in areawas took place in Rabi Jowar, Udid, Sesamum, Nigerseed, Kh Rice, Bajra, Ragi , Tur and Mung. During 2010- 2019, monetary returns obtained are high with higher diversification except Sesamum, Ragi, Safflower, Sunflower, Cotton and Kharif Jowar. From this crops higher monetary returns were obtained in 1990-1999 and 2000-10. The higher monetary returns were obtained with high diversification based on the Farm Harvest Prices.