DETERMINANTS CROP DIVERSIFICATION IN JAMMU & KASHMIR-A CASE STUDY OF DISTRICT KULGAM
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ABSTRACT
h e p r o c e s s o f c r o p
diversification towards the
Thorticultural crops in the State
of Jammu and Kashmir has taken
place with the introduction of various
land reforms introduced at a time to
time by the government of India. The
cultivation of such crops has made a
remarkable impact on the generation
of household income, employment
and revenue for the state. The study
of factors that improved the progress
of crop diversification depicts the
explicit consideration of geographical
significance in formulating
developmentalstrategies,resultingin
the establishment of basic infrastruc-
tural services like accessibility to
various markets in the neighboring
states, high level of price receptive-
ness among the farmers and the
emergence of timely policies by the
government triggered the process of
diversification towards the
horticultural crops in the state. The
present study will try to provide a
detailed account on the determinants
of the crop diversification from the
food crops (paddy) towards the cash
crops (apple) in the region. The
regression analysis shows the
determining impact of several
variables like age, gender, education,
years of schooling, family size, family
type, occupation, land owned, and
distance from the road on the process
of crop diversification in the study
area.
diversification, food
crops, cash crops, paddy, apple,
income, employment, Kulgam,
Kashmir.
Crop diversification is a best strategy
to achieve the goals of development.
It took the attention of policy makers
in the country during the recent
years. The approach envisages
changes in the production activities
KEYWORDS:
INTRODUCTION
DETERMINANTS CROP DIVERSIFICATION IN JAMMU
& KASHMIR-A CASE STUDY OF DISTRICT KULGAM
1 2
Mohd Asif Shah and A. Anbuvel
1
Ph.D. Research Scholar, Department of Economics,
Annamalai University, Annamalainagar , Tamil Nadu, India.
2
Assistant Professor, Department of Economics,
Annamalai University, Annamalainaar , Tamil Nadu, India.
ofthefarmsector,toadjustto
changes in the economic
environment and to face the
problems like unemployment
and depletion of natural
resources (Ramesh Chand,
1999). The main objective of
this approachis to raise per
capita income by means of
opening of avenues for
p r o l i f i c e m p l o y m e n t
opportu- nities in farm and
non-farm sectors and to
make the economic growth
broad and stable in the long-
run(AmitabhKundu,2012).
The success of the policy lies
in the identification of the
particular crop for theappro-
priate region-specific,
diversification choices,
establishment of physical and
institutional infrastructure
services and execution of
suitable strategies. Another
feature of this approach is to
prepare thefarmers to
1
4. DETERMINANTS CROP DIVERSIFICATION IN JAMMU & KASHMIR-A CASE STUDY OF DISTRICT KULGAM
growexcellent and profitable produce, based on both demand and supply in the long run(Anjani Kumar et al.,
2012).
Technology, modern implements, education, bank credit and road connectivity are the important
determinants of crop diversification (Anjani Kumar et al., 2012). Diversification is a significant approach to
enhance farm income, alleviate poverty, create employment, preserve ecology, promote exports and minimize
risks (Chand 1996, Ryan and Spencer, 2001). The diversification towards the cash crops has the ability to change
the agricultural set-up by means of income augmentation, employment generation, and export promotion
(Braun, 1995; Pingali and Rosergrant 1995; Chand, 1996; Ryan and Spencer, 2001). Agricultural diversification in
India is gradually picking up thrust in favour of high-value food commodities, mainly to enhance income rather
than the traditional concept of risk management (Joshi, 2014). The contribution of diversification to agricultural
growthinIndiahasbeenaquitesubstantial,30percentduringthe1990s(Joshietal2007).
The economy of Jammu &Kashmirprincipally depends on agriculture, having about one-third of its
population engaged with thisagriculture and allied sectors. The geography setup of the area is restricting the
growth of paddy cultivation.The production of paddy is not increasing in proportion to the cost involved in the
farming, so in thisbackground of stagnation in paddy production, which is not able to raise the level of
employment in the region, horticulture is a possibleoption for exploration. The area is blessed with the
appropriateclimaticzonesforrisingtemperate,sub-tropicalandtropicalfruitsthroughoutthewholeyear.These
fruits are not only the supplemental diet of the local people, but also appear to be the main item of export to
otherpartsofIndiaandtherestofworld(EconomicSurvey,2014-15).
J&K accounts for about 67 percent of the total apple production and 50 percent of its exports in the
country, hence an important foreign exchange earner and vital for economic development of India. India
annually exports apple worth RS. 400 million (Nearly US$ 10 million) out of which Rs. 200 million of apples come
from Kashmir (Mohmad Iqbal Reshi et al., 2010). The huge natural resource base has helped the primarily
agrarian state to extend its base for cultivation of major fruits such apples, walnut, walnut kernels, bitter apricot
nuts,pears,almond,plum,cherriesandsaffron”(Sajad,andTripathi,2013).
Kulgam which famous for the rice productivityonce used to be called as therice bowl of the Kashmir is
now amongst the least producers of rice (A. N. Raina, 2012). Paddy land is getting converted into horticultural
land as farmers seek to earn more revenue against horticultural products (Mohmad Iqbal Reshi et al., 2010).
Farmersfeelthatstickingonlytothewater-intensivecropslikepaddyintimesofwater-scarcitymightprovenon-
beneficialand theyreadilyswitch overto cashcropslikeapple,almond and walnuts.After1980s,introduction of
horticultural sector brought out major changes, regarding crop cultivation (Arif Malik & Ashaq Hussain,
2012).The introduction of science and technology has changed the old age cropping pattern of paddy to
horticulturalcrops.Appleoccupiedasizeableareainthemountainousareaofthestate,whilesaffronisgrownin
Pulwamaarea(Khan,2006).
Inthebeginning,itneedstobeunderstoodthatadiversifiedcroppingpatternisnot
possible in a modern commercial farm. A modern commercial farm, specializes in the production of one main
crop in every crop season; the crop that is most economicaland profitable on the given land, climate and market
environment in which it is cultivated. The cause of the persistentchase of profit maximization induces a modern
commercial farmer to cultivate the most profitable crop of the season in the largest possible area. Being a ‘price
taker’ in the market, the outcomeof the policy is only the maximization of profits. When a largenumber of crops
arecultivatedinaregion,thenthemarketedsurplusofnoneofthesecropsissatisfactorilyprofitable.
The present study is based on primary data, obtained from the surveysamples byadoptingthe stratified
random sampling method to choose the households from the selected villages, with the help of an interview
schedulebyimplementingthree-stagesamplingprocedureasfollows:
(i)Selection of all ten horticultural blocks of district Kulgam. (Manzgam, Waripora, D.K. Marg, Kulgam, Arreh,
THEORETICALPERSPECTIVE
ProfitMaximisationTheory:
METHODOLOGY
- 6 | - 10 | - 2016Volume Issue November
Available online at www.lsrj.in
2
5. Kadder,Qazigund,Devsar,QaimohandYaripora)
(ii)Selection of thirty four highly apple populated orchardist villages from all ten blocks on the basis of the
numberofvillagesintherespectiveblocks.
(iii)Selection of total of 272 sample respondents ofthe total thirty-four villages, eight sample respondents from
eachvillage.
The magnitude and the determinants of diversification at the district level has been carried out using
farmlevelinformationcollectedthroughtheinterviewschedule.Theresearcherhastestedthevariablesthatare
considered important for diversification towards the high-value crops. The magnitude of crop diversification is
measured by Modified Herfindahl Index or commonly known as Simpson Index for measuring the extent of crop
diversification. It is obtained by subtracting the Herfindahl index (HI) from one and has a direct relationship with
diversification, such that its zero value indicates specialization and a movement towards one shows an increase
intheextentofcropdiversification(Malik&Singh2002).
HerfindahlIndex(HI)iscomputedbytakingthesumofsquaresofacreageproportiontoeachofthecrop
inthetotalcroppedareaasgivenbythefollowingformula:
Where N is the total number of crops and Pi = Ai / ∑1Ai represents acreage proportion of i-th crop in the
total cropped area. The value of Herfindahl Index is bounded by 0 and 1. The Herfindahl index is bound by zero
(complete diversification) to one (complete specialization). With an increase in diversification, Herfindahl Index
decreases and vice-versa. Herfindahl Index is a measure of concentration, alternately, an inverse measure of
diversificationsincetheHerfindahlIndexdecreaseswithanincreaseindiversification.Thus,fortheavoidanceof
confusiontocomparetheHerfindahlIndexwithotherindices,theSimpsonIndexthatis(1-HerfindahlIndex)has
beenworkedoutformeasuringthediversification.
Where N is the total number of crops and Pi = Ai / ∑1Ai represents acreage proportion of i-th crop in the
total cropped area. Its value also lies between 0 and 1. This index increases with an increase of diversification. It
approacheszerowhenthefarmisspecializedandtakesamaximumvaluewhenthereisperfectdiversification.
The Multiple Linear Regression Model has been used to quantify the determinants of crop
diversification. The area under paddy and apple crops were regressed on following given explanatory variables
to identify the determinants of crop diversification in the region. The Multiple Linear Regression Model of
followingtypehasbeenused:
Y=a+b X +b X +b X +b X +b X +b X +b X +b X +b X +U1 1 2 2 3 3 4 4 5 5 6 6 7 7 8 8 9 9
Wherethedependentvariable,Y=areaundertheapplecultivation,
a=constant,
b =regressioncoefficientsi
X =severalattributesofthehouseholdheadi
X =age1
X =gender2
X =educationalqualification3
DETERMINANTSOFCROPDIVERSIFICATION
SimpsonIndex(SI)SimpsonIndexisgivenbythefollowingformula:
MULTIPLELINEARREGRESSIONMODEL
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6. X =yearsofschooling4
X =familysize5
X =familytype6
X =occupation7
X =totallandowned8
X =distancefromroad9
The results of the Linear Regression Model are presented in Table No. 1. In the table, the regressed
variable is the area under the apple cultivation in the year 2014 respectively. And the frequency distribution of
the sample respondents according to the different variables and the level of crop diversification is presented in
Annexure-1
Thistable(TableNo.1)representsthekeyroleofvariousexploratoryvariablesindeterminingtheareaof
cultivation under apple crop in 2014. From the table, it is noticeable that out of the nine variables discussed
already, all of them are found to be either positively or negatively influencingthe farmer’s decision to diversify in
favorofapplecultivation.
Theageofthehousehold-headisanimportantdeterminantofcropdiversification,astheyoungfarmers
are generally more risk takers while the older age famers are largely risk averters and prefer to follow traditional
technologies and crops. From the table results also, age is found to have a negative influence (sign of the
coefficient being negative and highly influencing) on the farmer’s decision to allocate their land for the
cultivation of apple. Therefore lesser the age of the farmer, higher the chances for diversification and higher the
ageofthefarmer,lessthechancesofdiversification.
The next variable is gender, which is found to have a significant influence on the farmer’s decision to
diversify their lands in favor of apple cultivation. The sign of the coefficient is positive and highly significant. The
female-headed households are seen to have a higher propensity towards diversification. It was also observed
from the results that all the female household heads (28 female respondents) have specialized their lands
towards apple cultivation, and only a share of 18.9 per (46 male respondents) cent of the male household heads
wereseentohavespecializedtheirlandstowardsapplecultivation.
If a household-head is more educated (here more years of schooling), it is found that his decision for
sowing a particular crop would be governed by the sound economic estimates of the costs and benefits of that
crop. In addition, an educated farmer is more enlightened about the existing options of demand and supply and
is more attuned towards the advanced techniques than an illiterate farmer. Here likewise education yielded a
positive and significant influence on the farmer’s decision to diversify their lands towards the apple cultivation.
So if the farmers are more educated or having more years of schooling, it will definitely help them in taking the
conscientious decisions and enable them in accessing several facilities, needed for crop diversification. Hence, it
RESULTSANDDISCUSSION
Table No.: 1
DETERMINANTS OF CROP DIVERSIFICATION IN THE STUDY AREA
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Explanatory Variables
Dependent variable :
Area under Apple Cultivation in 2014
Coefficient Standard error
Age (Years) -1.466** 0.178
Gender (Female-1, Male-0) 1.529*** 0.348
Years of Schooling (Years) 0.434** 0.212
Family Size (Number) -1.030* 0.182
Family Type (Nuclear-1, Joint-2) 0.363* 0.302
Occupation (Government Service-1, Others -2) 0.065* 0.156
Total Land Owned (Number in Kanals) -2.036** 0.154
Distance from Road (Number in Meters) -0.206** 0.113
Constant -3.102** 0.800
DETERMINANTS CROP DIVERSIFICATION IN JAMMU & KASHMIR-A CASE STUDY OF DISTRICT KULGAM
7. could be concluded that more the years of schooling more the chances of diversification and less the schooling
years,lesswillbethechancesofdiversification.
Regarding the family size, it is pertinent that households with larger family size does have the advantage
of availability of more assured labor to help them to grow high-value crops like apple, as these crops are highly
labor -intensive. So the family size should have a positive association with the crop diversification, but here from
the observed results, the family size is negatively influencing the farmer’s decision to diversify their lands
towards apple cultivation. 43.6 per cent of the households (68 respondents) with the family size of below 5 have
completely specialized their lands towards apple cultivation, while just 6 respondents (7.9 per cent) of the
households with the family size of 6-10 have specialized their lands for the cultivation of apple and none of the
household heads with the family size of above 10 have gonefor specialization. Hence, wecanconcludeby saying
thatthesmallsizedfamilyhouseholdsdiversifymoreascomparedtothelargesizedfamilyhouseholds.
The nature of the family (Joint or Nuclear) can influence the farmer’s decision to grow specific crops.
Mostly nuclear families are strong decision makers, while in case of a joint family, the role of decision is highly
influenced by the presence of a large number of family members. Here also the sign of the coefficient is positive
and significant, meaning the influence of family type on the diversification. Nuclear families are seen to have a
higherpropensitytodiversify towardsapplecultivation,whileasthejointfamilyhouseholds arelessdiversifying
towardsapplecultivation.72outof194nuclearfamilyrespondents(whichforms37.1percent)havespecialized
their lands for apple cultivation, while as 2 out of 78 (which forms 2.6 per cent) of the joint family households
have specialized their lands for apple cultivation. So it can be concluded that nuclear family households diversify
morethanthejointfamilyhouseholds.
The households having agriculture as their main occupation are likely to diversify more than those who
are engaged in other activities, say in service and business, with agriculture as their subsidiary occupation. It is
evidentthatthefarmersengagedonlyinagriculturalpracticescandevotemoreoftheirtimeandcanutilizetheir
implements well in cultivating a particular crop than those who are not fully engaged in agriculture. But here the
story is totally different, as the occupation is significantly influencing the decision of farmer’s to diversify their
lands, but regarding the occupation type, households practicing agriculture diversify less as compared to those
who are involved in government service. 36 out of the 72 respondents (which forms 50.0 per cent) who are
havinggovernmentserviceastheirmainoccupationhavespecializedtheirlandsforapplecultivation.And32out
of 118 respondents (which forms 27.1 per cent) who are having agriculture as their main occupation have
specialized their lands for apple cultivation. So it can be inferred that the farmers who perform non-farm
activities diversify more as they don’t have enough time and labor to cultivate the high labor intensive crops like
apple,buttheymakeuseoftheirearnedincomeandhirelabortodiversifytheirlands.
From the comprehensive literature, the total land owned (operated area) was believed to have the
positive association with the crop diversification. As farmers operating on a bigger piece of land have wider
choice and options for cultivating diversified crops as compared to those having a small piece of land. But it was
observed from the result that the land size does have a negative influence (sign of the coefficient being negative
and highly significant) on the decision of farmer to diversify their lands towards apple cultivation. Cultivation of
apple suits the small farmers most. The cultivation of apple is labor intensive and generates a regular flow of
incomeforthem.Asfromtheobtainedresults,70(whichforms94.6percent)outofthetotal74householdswho
have opted for specialization are having land size below 9 Kanals. And interestingly, none of the 12 households
who are having land size more than 16 Kanals have opted for specialization. Hence, it can be concluded that the
farmershavingsmalllandsizediversifymorethanthebigsizelandholdinghouseholds.
The existence of infrastructure like road connectivity, access of villagers to market, availability of
communication facilities, etc. facilitates a better post-harvest management of the produce. Thus the access to
infrastructurelikeroadconnectivityhelpsthefarmerstoreceiveabetterpricefortheirproduceandopensaway
to new markets and helps in minimizing the role of middlemen. Therefore, crop diversification should increase
with the access to better infrastructural facilities to the farmers. Here also from the result, it is obvious that the
distance from the road proves to be negatively influencing the farmer’s decision to diversify their land towards
apple cultivation. And the households who are having paddy lands near to roads are readily switching over apple
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8. cultivation. There are several infrastructural facilities which influence the farmer’s decision towards
diversification, but due to the problem of multicollinearity, only the influence of road distance has been
calculated and the rest of the variables are not considered in the analysis. Thus, it canbe concludedthatthe road
distance is negatively influencing (coefficient being negative and highly significant) the diversification, therefore
thehouseholdshavinglandsneartotheroadsdiversifymorethanthosehavingthelandfarawayfromtheroads.
The study revealed that the farmers in the study area are going faster towards the specialization, rather
than diversification. Now the concern is that whether the process would sustain in the long-run, seeing the
reality that the apple crop is totally replacing the paddy crop. As rice is the staple food for the people living in the
area,sotheymightgethighlydependentontheneighboringstatesfortheneedoftherice.Theshifttowardsthe
apple cultivation will definitely have a number of economic benefits, but it also may turn as a way to food
insecurityintheregion,andalsoitmayhaveadverseecologicalimpacts.Sothereistheroleofthegovernmentto
check the ongoing speedy specialization of the apple crop on the cost of the paddy crop. The government can
strengthen and ensure the supply of the rice needed in the State, so as to boost the horticulture sector. The
openingofPublicDistributionCentersineveryvillageoftheStatecanhelptoachievethetargetoffoodsecurity.
Also the study tried to find out the main determinants of the crop diversification in the region. The
regression analysis has brought out the importance of several factors, which play a greater role in the
diversification and specialization towards the apple cultivation in the study area. Infrastructural facilities like
roads and markets are seen playing an important role in the farmer’s decisions towards the diversification and
specialization of apple. So there is the role for government to increase the public investment in such
infrastructuralfacilitiestoboosttheeconomytowardstheapplecultivatingeconomy.
Building up an economy as the horticultural capable economy is not enough, as the horticultural crops
are more perishable in nature than the food crops, so there is a need to check the post-harvest losses in the
sector. Most of the respondents depicted the Scab disease, outburst of the early leaf fall and outbreak of red
spider mite, which have declined the quantity as well as the excellence of the apple in the area. As so many
studies also point out towards the need of post-harvest management in the horticultural crops, which can be
helpful to put a halt in the ongoing trend of 30 per cent of the post-harvest losses in fruits. There is not even a
singlecold-storagehouseavailableinthedistrict,sothereisneedtobuildupsuchstructureswhichcanmotivate
thefarmerstowardsapplecultivation.
Although the horticultural sector is seen growing at the faster rate, but there are still lots of bottlenecks
to be covered within the sector. And there is still enough area to be explored for horticulture, according to the
data available, as it can be seen that for most of the varieties of apple, the minimum time period of gestation is
about 8 years, which means that there is the possibility of cultivation of several types of cereals and pulses along
with the cultivation of apple trees (intercropping), and also after the completion of the gestation period of the
appletreestheproductionwillbestillmoreascomparedtothecurrentperiod.
There are no any fixed prices laid by the government, as the fluctuating prices create problems for the
growers and contractors. While observing, the biggest problem faced by the growers of apple is to carry their
produceinunrefrigeratedvehiclesandthepresenceofthecommissionagentsalsoprovesnon-beneficialforthe
applecultivators.Nowaday’sministryofrailwaysisworkinginordertoconnectthevalleywiththerestofIndia.
Taking the above facts into consideration, if apposite steps are taken, there will surely be progression in
the state. In every circumstance, this sector has continuouslyremained an imperative economic sector and a
large portion of the population flourishes inthis sector. Hence, if appropriatesteps are taken upon the
suggestions given in the study, there will surely be a positive change in the economy and the standard of living of
the farmers allied to thissector. In view of the fact that, this sector is one of the important foreign exchange
earners of the state, so thatthe sector will emergeas a vast industry in the State and the requirements should be
madeforadditionalexports.
CONCLUSIONANDPOLICYSUGGESTIONS
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