Diversification towards Horticulture Crops: Role of Risk and Uncertainty in Resource Allocation Decisions of Apple Growers in Kashmir Valley

The diversification towards Horticulture crops is highly remunerative but also risky as price of crops fluctuate widely. By allocating more land towards high value crops farmers not only take risk of fluctuating prices and yield but also take consumption risk by reducing the area under subsistence food crops. This paper, based on primary survey data, has examined the land allocation decisions of farmers towards horticulture crops and several factors influencing these decisions. The paper examines the role of price expectations of farmers in land allocation decisions and input-use propensities and factors influencing the price expectations. It also analyzes the risk attitude and factors influencing the risk behavior of farmers in allocation resources towards horticulture crops