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Micro-Level Decision for Area Shift in Favour of High-Value Crops: A Case of Horticultural Crops

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  • Mehta, Pradeep Kumar

Abstract

Area shift towards horticultural crops is vital for increasing farm income, productivity and overall employment in the agricultural sector. Several economic (price and income) and non-economic (food-security concerns) factors influence farmers’ decisions at the farm level. This paper has examined the role of both price and income, along with the role of food-security goals, in the decision-making of farmers regarding shift from low-value crops (food crops) to high-value commercial crops (horticultural crops). It has been shown that higher food requirements at home inhibit the extent of crop-substitution decision of the farmers. However, farmers are less responsive to the changes in the prices of food grains (in terms of changing their consumption) as higher income from high-value crops provide adequate money to purchase food crops from the market. Relative income (not the relative price) of the crops has been found to explain the crop-substitution decisions of the farmers. The farmers have been reported to calculate the aggregate gain from the crop rather calculating only the price of the crop, while making the decision to shift. Their capacity to generate higher productivity along with better market prospects have been recorded to explain farmers’ decision to shift area.

Suggested Citation

  • Mehta, Pradeep Kumar, 2009. "Micro-Level Decision for Area Shift in Favour of High-Value Crops: A Case of Horticultural Crops," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 22(2), July.
  • Handle: RePEc:ags:aerrae:57414
    DOI: 10.22004/ag.econ.57414
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    References listed on IDEAS

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    Cited by:

    1. Ahmad, Nasim & Singh, K M & Sinha, D K, 2020. "An Economic Analysis of Crop Diversification and Its Determinants in Bihar Agriculture," MPRA Paper 104328, University Library of Munich, Germany, revised 14 Jul 2020.
    2. K.Thomas Felix & K. B. Ramappa, 2023. "An economic analysis of crop diversification and dynamics of cropping pattern in Karnataka, India," Palgrave Communications, Palgrave Macmillan, vol. 10(1), pages 1-9, December.
    3. Saravanakumar, V. & Malaiarasan, Umanath & Balasubramanian, R. & Angles, S., 2020. "Production efficiency and profitability of major farming systems in Tamil Nadu," Agricultural Economics Research Review, Agricultural Economics Research Association (India), vol. 33(Conferenc), December.

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