364
The hilly terrain of the North-Eastern Hill (NEH) region of India is suitable for
sustainable multi-enterprise systems. As an alternative to shifting cultivation in
NEH, Satapathy ( 2003 ) suggested using watershed-based farming systems that
involve appropriate soil conservation measures, mixed land use of agri-horti-silvi-
pastoral systems, a subsidiary source of income through livestock rearing, and the
creation of water harvesting and silt retention structures at lower reaches. Economic
analysis of different micro-watershed-based farming systems namely dairy farming,
agro-pastoral and agri-horti-silvi-pastoral systems have shown the economic viabil-
ity of these systems as an alternative to shifting cultivation.
Coastal areas offer tremendous opportunities if proper strategies are adopted
using well-focused action plans under an integrated farming systems approach so
that agriculture will be more productive, profitable, sustainable, competitive and
ecofriendly. In these regions, land holdings are small and fragmented, operational
resources are scarce, and rice continues to be the major crop. The rice-based farm-
ing system is the single most important source of income and employment for most
of the people in this tract and is a viable option for meeting their livelihood require-
ments. Rice-based farming systems such as rice + fish, rice + duck, rice + fish +
duck, rice + fish + Azolla, rice + fish + poultry/duck + vegetables + fruits + agrofor-
estry are practiced particularly in the rainfed lowlands of coastal areas (Nanda and
Garnayak 2010 ).
2.3 Institutional Mechanisms
Institutions play a major role in agricultural development along with other resources
like technology, capital and enterprise. In small producer-dominated situations like
Indian agriculture, the role of institutions becomes more crucial as there are struc-
tural- and enterprise-specific constraints like high transaction costs, lack of market
integration, and interlocking of factor and output markets which only institutions
and organizations can tackle effectively. Institutions help small farmers by reducing
transaction costs, managing or reducing risk, building social capital, enabling col-
lective action, and/or readdressing missing markets (Singh 2013a, b). Institutional
innovation occurs when there is a “change of policies, standards, regulations, pro-
cesses, agreements, models, ways of organizing, institutional practices, or relation-
ships with other organizations” so as to “create a more dynamic environment that
encourages improvements in the performance of an institutions or system to make it
more interactive and competitive” (IICA 2014 ). Institutional innovations needed for
agricultural transformation in South Asia are distinct due in part to the unique nature
of the sector. Most farmers are resource-poor, face diverse challenges particularly
under dryland ecosystems, and have specific needs that must be addressed.
Timely access to farm machinery for sowing, harvesting, etc. is a major compo-
nent of any adaptation strategy to deal with climatic variability. The sowing window
in rainfed areas is mostly very short and access to farm machinery is poor for small-
holder farmers. As a result, many farmers are not able to sow the crop in a timely
C. Srinivasa Rao et al.