Determinants of Agricultural Commercialization: A Study from North Karnataka, India

Abstract

Aim: Agriculture has been the bedrock of India's economy for centuries, providing livelihoods for a significant portion of the population. The present study aimed to assess the factors determining commercialization of agriculture in the study area. Specific Objective of the Study: To assess the factors determining commercialization of agriculture in North Karnataka. Place and Duration of the Study: The present study was conducted in the Dharwad and Gadag districts (Cluster-I) and the Belagavi and Bagalkote districts (Cluster-II) of North Karnataka, with a focus on the gross irrigated area, during the agricultural year 2022-23. Methodology: The study was based on primary data collected from 240 farm households using personal interview method. It employed descriptive statistics and calculated the Household Crop Commercialization Index (CCI) to measure the extent of agricultural commercialization, along with the Tobit Regression to assess the factors determining commercialization of agriculture in the study area. Result and Discussion: The study revealed an overall Crop Commercialization Index (CCI) of 89.54 per cent in the cluster-I and 96.02 per cent in the cluster-II, indicating a disparity in the degree of crop commercialization, prevalence of sugarcane cultivation, a commercial crop, among farmers in the cluster-II contributed to higher commercialization in the study area. Tobit model estimates showed that agricultural land (coefficient of 0.26) and fertilizer usage (coefficient of 0.47) had a significant positive impact on commercialization. In contrast, pesticide usage (coefficient of -0.18) negatively affected commercialization. Larger landholdings and increased fertilizer usage enhanced production capacity and yield, supported higher commercialization.