Achieving crop diversification has often been stressed as a major policy objective. Yet, past policies in the agriculture sector had promoted rice cultivation at the expense of minor crops. While static profitability analyses indicate greater relative profitability of many non-cereal crops, risks in marketing these produce are found to be significantly high. More importantly, land characteristics are found to largely limit the expansion of area under these crops. Along with it, minor irrigation in Bangladesh is found to have favoured cereal production, making the crop economy less diversified. In order to achieve greater diversification in the crop sector, future policies need to facilitate exports, promote agro-processing industries, and emphasize on research to develop field channel designs that will facilitate simultaneous production of both cereals and non-cereals within the same command area. Along with these, large scale investments on flood control and drainage, continued support for canal re-excavation, and more rational planning of rural housing are called for to increase the size of suitable land.