The statement is True. In the Indian rural economy, agricultural diversification refers to the shift from traditional subsistence farming to more commercial, market-oriented farming that includes horticulture, floriculture, animal husbandry, fisheries, and other allied activities.
Arguments in support:
Reduction in Risk: By diversifying crops and activities, farmers can reduce their dependence on a single crop and protect themselves against crop failure and price fluctuations.
Employment Generation: Diversification provides multiple employment opportunities in allied sectors such as dairy, poultry, fisheries, and horticulture.
Improved Income Levels: Farmers can increase their income by cultivating high-value crops like fruits, vegetables, and medicinal plants.
Efficient Resource Use: Diversification promotes judicious use of land and water resources by encouraging crop rotation and mixed farming.
Promotes Sustainable Agriculture: It helps maintain soil fertility, reduces pressure on groundwater and avoids mono-culture practices.