Acknowledgements We are grateful to Research Department of National Bank for Agriculture and Rural Development (NABARD) for providing financial assistance under the R&D funds for conducting the project study entitled “Price Spread Analysis and Marketing Pattern of Fruits and Vegetables”. We express our sincere gratitude to Professor J. P. Sharma, Vice Chancellor, Sher-e-Kashmir University of Agricultural Sciences and Technology of Jammu (SKUAST-J) for providing constant support in the publication of this manuscript. The constant support provided by Dr. R. K. Gupta, Director Research and Dr. J. P. Sharma, Associate Research, SKUAST-Jammu for implementation of the project is duly acknowledged. The help provided by Dr. D.P. Abrol, Dean Faculty of Agriculture, SKUAST-Jammu, Mr. Mohinder Kumar and Mr. B.B. Mohanty, NABARD is duly acknowledged. We are very grateful to the farmers of the Chenani block of Udhampur district for sharing information and cooperative during data collection as without their cooperation this study was not possible. We dedicate this study to the farmers of Udhampur district of Jammu region. We are also grateful to Ph.D scholars of the Division of Agricultural Economics and Agribusiness Management for providing help in analysis of the data and typesetting of the manuscript. Without their help it was not possible to draft the project report and publish it in the form of a book. The first author is also thankful to Mr. Harminder Singh and Ms. Jyoti Devi for maintaining the accounts of the project.

Globalization of economies and liberalization of trade has led an urgent need for prioritizing the potential areas for investment in order to earn handsome amount of income. Even the entrepreneurs, small as well as marginal farmers aspire to take advantage of global opportunity. Diversification to horticultural crops has been found to be best option as they make more profit, generate additional employment for rural masses and conserve natural resources. Agriculture plays a vital role in the Indian economy. Over 52 per cent of the rural households depend on agriculture as their principal means of livelihood. But unfortunately Indian farmers in general are small and marginal land holders with poor resources and realizing income mainly from cereal based production system, which is insufficient to improve their living standards. Agriculture, along with fisheries and forestry, accounts for one-third of the nation’s GDP and is its single largest contributor (www.indianbusiness.nic.in). GVA at Basic Prices for 2019-20 from ‘Agriculture, Forestry and Fishing’ sector is estimated to grow by 2.8 per cent as compared to growth of 2.9 per cent in 2018-19. The GVA estimates of this sector are based on 1st advance estimates of agricultural production during Kharif season of 2019-20 obtained from the Ministry of Agriculture & Farmer Welfare. For Livestock sector, estimates of production of major livestock products (i.e. Milk, Egg, Meat and Wool) obtained from the Department of Animal Husbandry & Dairying and Fish production data obtained from Department of Fisheries have been used. The crops including fruits and vegetables account for about 56 per cent, the livestock products 30 per cent and forestry & fisheries 14 per cent share of GVA in total GVA of ‘Agriculture, Forestry and Fishing’ sector [As per the estimates released by National Statistics Office, Ministry of Statistics and programme Implementation, GoI, 2020]. Agricultural exports constitute a fifth of the total exports of the country. In view of the predominant position of the Agricultural Sector, collection and maintenance of Agricultural Statistics assume great importance. In 2018-19, India achieved a record food grain production of 285.17 million tonnes beating the previous year’s (2017-18) 285.01 million tonnes, according to data provided by Department of Economics and Statistics (DES). Also, agricultural profitability has increased over the last decade with record increases in MSPs (minimum support prices) for agricultural produce for all covered crops.

Bhatia, (1965) in his study on “Patterns of Crop Concentration and Diversification in India” has observed that physical, socio-economic and technological factors have affected the magnitude of crop diversification. Variations in above mentioned factors are responsible for variations in patterns of crop diversification in India. He has also evolved a new technique for measuring crop diversification in India. He has taken all the crops which are having 10 per cent or more than 10 per cent of the cropped area. He summed up the total area under these crops and divided the sum by the number of crops. According to his method, higher the index, lower is the magnitude of crop diversification and vice-versa. Ayyar, (1969) in his study “Crop Regions of Madhya Pradesh: A Study in Methodology” has evolved a new technique for measuring crop diversification regions. He has taken all the crops which were having 1 per cent or more than 1 per cent of the total cropped area. Then he divided the sum of crops by the number of crops which are having 1 per cent or more than 1 per cent of the total cropped area. His method is an improvement over Bhatia’s and Singh’s methods for measuring crop diversification. Patel and Pawar (1980) studied the marketing of fruits in Mahatma Phule market, Bombay. The study showed that there was close relationship between wholesale prices and supply position, whereas there was no such pattern in case of retail prices. The producers’ share in consumers’ rupee was 33.07 per cent for sweet oranges. In case of apples, mangoes and grapes, the share of the producer in consumers’ rupee varied according to the varieties and ranged from 33 to 54 per cent. The study also made some suggestions as standardization and grading, and establishment of cooperative marketing societies for getting better prices for the producers.

The present investigation entitled “Diagnostic Study of Farmers in context of Price spread analysis, marketing pattern and Potential assessment of agricultural diversification in Chenani Block of Udhampur district” was carried out during the year 2015. The sampling structure, experimental procedures and techniques adopted during the course of investigation have been described in this chapter. 3.1 Locale of study The present study was conducted in Chenani block of Udhampur district in Jammu and Kashmir state. Mantalai, Kosar, Bupp and Bashath villages were randomly selected. 3.2 Climate and rainfall The Jammu and Kashmir state is situated between 320.17'–360.58' North latitude and 370.26´–800.30´East longitude. The state is the northern most part of the India is girdled by Tibet to the east, China and Afghanistan to the north, to its west is Pakistan. To its south lies the states of Punjab and Himachal Pradesh and have been divided into three agro climatic divisions’ viz. outer plain and outer hills, middle mountains and Kashmir valley and inner Himalayas (Ladakh). The outer plains and outer hills includes Kathua and Jammu districts, extends up to Shivalik hills in the north. According to NARP (National Agricultural Research Project) classification this state has been divided into four agro-climatic zones: Temperate, Sub-tropical, Intermediate and Cold-Arid zone. In summer hot dry winds from plains of Punjab make it very hot, dust storms are common with occasional rain. Rainfall occurs from July to September. Average rainfall is 1143 mm and temperature shoots up to 460C during May to June. During December to February temperature is between 13.50C to 200C, rainfall is 150 mm and in upper reaches there is snow. In the region of middle mountains and Kashmir valley winters are very cold. There is snowfall during winter and subzero temperature. In valley, winters are long and summers are short but pleasant. Average rainfall is 732 to 854 mm. The maximum temperature hardly ever goes beyond 350C. In region of inner Himalayas, days are hot and there are no clouds in the sky. Winters are very cold. Temperature falls as low as minus 230C. The average rainfall is 976 mm and humidity level is very low.

The results pertaining to the present investigation, “Diagnostic Study of Farmers in context of Price spread analysis, marketing pattern and Potential assessment of agricultural diversification in Chenani Block of Udhampur district” have been presented in this chapter. 4.1 Cost and return analysis of cereals, vegetables and fruit crops For financial analysis of different enterprises, it is necessary to workout costs of various inputs, which needs to be deducted from the value of inputs. The cost and return analysis of cereal crop and vegetables in Mantalai village of Chenani block is presented in Table 4.1. Per hectare Cost A which included all the variable costs excluding the family human labour were found to be highest (?55416.38) for the cultivation of garlic followed by tomato (?54260.75) whereas raddish incurred lowest of ?29361.33. The cost B which included the fixed costs in addition to cost A were ?39020.89 for maize, ?59074.66 for tomato, ?37280.11 for cucumber, ?33361.33 for raddish, ?41053.97 for beans and ?59416.38 for garlic. The cost C i.e. total item wise per acre operational costs which also included the imputed value of family labour were found to be highest (?149074.66/ha) in tomato and lowest of ?39361.33/ha in raddish. The cost C increases in case of tomato to such an extent only because of the addition of family labour. Cost C* was also calculated by adding 10 per cent of cost C as management cost to total cost.

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