Given the inter-relationship of different agro ecological sub-systems in any country, success of the strategy of diffusion of varieties invariably adversely affects the conservation of agro biodiversity. At the same time, given the climate change and other fluctuations in the environment, in-situ conservation of agro biodiversity is most essential for future survival of the society. This study is a part of a long term investigation being pursued by the first author about the micro level changes at plot level in the farmers' fields and their implications for micro policy at national and international level. Same villages were studied in 1988-89 and 2000-02 to look at the degree of erosion of agro biodiversity. In addition, a survey on preferred incentives for in-situ conservation was also conducted among the local communities. The implications of the study for monetary and non-monetary incentives for conservation have been drawn. Different models of incentives for possible action research have been described. There are not too many studies that provide micro level evidence over a decade on the subject. The findings were presented to the national policy makers though actual response in practice so far has been limited.