Diversification in agriculture is considered as an important means for rapid economic growth and development in the hilly state of Himachal Pradesh. It includes shift in cropping pattern, i.e., growing high-value crop in place of traditional crops, and adoption of allied activities like dairy, poultry, fishery, sheep and goat rearing, and horticulture, etc. The present study seeks to examine the extent of agricultural diversification in Himachal Pradesh through a comparative analysis of crop diversification, in tribal and non-tribal areas. An attempt has also been made to find out the reasons for decrease in diversification over time. Herfindhal and Entropy indices are used to determine the degree of crop diversification in the sampled farms. The results show high level of crop diversification in tribal area and among small farmers. Further, between 1980-90 and 2004-05, the number of crops decreased resulting in low level of diversification in both the areas of the state.

Diversification involves transformation of a mono-cropped farm into a multifaceted farm enterprise. It is among the most important strategies available to the farmer for stabilizing the income, and spreading out the risk of production (Murty, 1998). In Himachal Pradesh, agricultural diversification is of complex nature due to variation in agro-climatic conditions between different regions. Diversification has taken place at all levels, but it appears to have benefited more the districts falling in mid and high hills and also the medium and large farmers (Chand et al., 1986). Diversification is also considered as an important means for rapid economic growth in tribal areas. It can generate more employment opportunities and provide regular income to the farmers in these areas. In Himachal Pradesh, 84.5% of the total holdings belong to small and marginal farmers, operating only 47.1% of cultivable land (Economic Survey 2004-05). These farmers cultivate mainly low value and subsistence crops. In the absence of adequate farm and non-farm employment opportunities, they are also forced to live in poverty. The situation is likely to be worsen because of growing pressure of population on land and the limited scope of increasing production through subsistence farming. Hence, the need for commercialization and diversification of small farms within and outside agriculture and their proper integration with local and global markets is obvious. This is intended not only to liberate the marginal and small farmers from the poverty trap, but also to meet the state's growing demands for fruits, vegetables, milk and milk products, meat, fish, eggs, etc., which generally show increasing trend with rising levels of per capita income in the economy (Haque, 1996).

The state has been divided into two parts, viz., tribal and non-tribal areas. The multistage stratified random cum purposive sampling technique has been used in the present study. One Tehsil each from tribal and non-tribal areas has been selected, from which two revenue villages have been randomly selected, and finally, a sample of 30 marginal and small farmers from each village have been taken in probability proportion to their actual number. Thus, the study is based on 120 marginal and small farmers located in the tribal and non-tribal areas of the state. The farmers have been classified into two different categories, i.e., marginal and small farmers, based on the standard classification, according to which the farmers owning less than 1 ha of land are termed as marginal farmers and the farmers having 1-2 ha of land are termed as small farmers.

Agricultural Economics Journal, Small and Marginal Farms, Himachal Pradesh, Crop Diversification, Agricultural Diversification, Herfindhal Index, Agricultural Crops, Entropy Index, Tertiary Services Sectors, Livestock Enterprises, Horticulture Enterprises.