The correct option is 2 only.
Explanation
Poverty in the agricultural sector in India is primarily driven by structural bottlenecks that limit productivity and income generation. These include issues related to land holding patterns, population pressure, and lack of modernization.
Statement 1 is Incorrect: Indian agriculture is characterized by disguised unemployment, where more people are engaged in farm work than necessary, leading to low per capita productivity. The sector does not suffer from "excessive mechanization"; rather, the level of mechanization is relatively low compared to developed economies. Furthermore, mechanization typically leads to labor displacement (unemployment) rather than a "labor shortage."
Statement 2 is Correct: Fragmentation of land holdings is a major cause of poverty. As land is divided among heirs over generations, the average holding size has decreased significantly (often below 1 hectare). Small and fragmented landholdings make the application of modern technology difficult, prevent economies of scale, and render farming economically unviable for many households.
Statement 3 is Incorrect: Widespread poverty in the agricultural sector is generally attributed to a reliance on subsistence farming and low-value food grains, rather than a dependence on high-value commercial crops for export. Diversification into high-value crops is often advocated as a solution to increase farm incomes and reduce poverty, not a cause of it.
Key Takeaway: The primary structural causes of rural poverty in India include uneconomic land holding sizes (fragmentation), low productivity, and heavy dependence on the agricultural sector for employment (disguised unemployment).