CBSE 2023 Class 12 Economics Outside Delhi Set 1

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Question : 40
Total: 52
"Recently the Government of India has taken numerous steps towards increasing the farmer's income through agricultural diversification."
In light of the above statement, explain any two advantages of diversification in agriculture.
Solution:  
Advantages of Agricultural diversification are as follows :
(i) Minimisation of market risk: Due to crop diversification, there is increase in production of variety of crops rather than one crop. It has minimised the market risk due to price fluctuations.
(ii) Increase in Income: Crop diversification i.e., multi-cropping pattern and diversification of production activities i.e., animal husbandry, fisheries, and horticulture has increased the income of people in rural areas.
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