The present study examined the effect of incentives in crop production and identified the determinants of incentives on farmers in Central Gujarat. The real domestic prices of the pearl millet, the major crop, moved in tandem with incentive component over time. But this incentive failed to provide push to the crop productivity of pearl millet during the period. The real domestic price of pearl millet declined during the period under study. The factors such as prevailing interest rate and rural road infrastructure significantly affected the total factor productivity in the crop. While easy loan facility by banks with accessibility to smallholder farmers could go a long way, access to local market could also be ensured with good connectivity of road particularly the smallholders farmers located closer to ravines.
Key words: Soil conservation, incentive, determinants.