Investigating the determinants of crop diversification and its extent in Sikkim, India: a two-stage Heckman approach

Abstract

Purpose Crop diversification can be adopted as a strategy to make efficient use of resources and overcome region-specific constraints faced by smallholder organic farmers in the mountainous state of Sikkim in Northeast India. Facilitated by favourable agro-climatic conditions, diversification towards high-value crops can benefit a large number of farmers in this state. This paper aims to identify the factors influencing crop diversification and its extent in Sikkim, India. Design/methodology/approach Using primary data, collected from 170 organic farmers in two districts of Sikkim, this study has identified the determinants of households’ decision to diversify crops and the level of crop diversification. Heckman two-stage model along with Simpson Index of Diversification (SID) has been used for the analysis. Findings The results show that crop diversification has been adopted by about 46% of the households in the study area. The major factors which determine the household’s decision to diversify crops are age, education, farming experience, training, irrigation, membership in a farmer producer organisation (FPO) and distance to the nearest town. A household’s level of diversification is majorly influenced by farming experience, number of cattle owned, irrigation and membership in an FPO. Research limitations/implications This study was based on a cross-sectional primary survey. Therefore, the findings may be subject to some limitations even though all efforts were made to minimise them. Originality/value The study is based on a novel data set collected to examine the determinants of crop diversification in the hilly state of Sikkim in Northeast India. The study extends the growing body of literature on the inherent prospect of crop diversification and farmers’ adaptations towards the changing climatic conditions in the hill economy.