Patterns of crop diversification of modern agricultural technology, especially during the period of the Green Revolution in the late sixties and early seventies, there is a continuous surge for diversified agriculture in terms of crops, primarily on economic considerations. Indian agriculture is increasingly getting influenced more and more by economic factors. This need not be surprising because irrigation expansion, infrastructure development, penetration of rural markets, development and spread of short duration and drought resistant crop technologies have all contributed to minimizing the role of non- economic factors in crop choice of even small farmers. What is liberalization and globalization policies are also going to further strengthen the role of price related economic incentives in determining crop composition both at the micro and macro levels. Obviously, such a changing economic environment will also ensure that government price and trade policies will become still more powerful instruments for directing area allocation decisions of farmers, aligning thereby the crop pattern changes in line with the changing demand-supply conditions. In a condition where agricultural growth results more from productivity improvement than from area expansion, the increasing role that price related economic incentives play in crop choice can also pave the way for the next stage of agricultural evolution where growth originates more and more from value- added productions.
