This research work examined households’ preferences for dried fruit and nuts consumption and their willingness to pay for improved quality of local products. A random sample of 200 households from urban and rural areas of Peshawar and Mardan were interviewed face to face for data collection. In the survey households’ preferences for dried fruit and nuts were examined using 5-point Likert scale and their willingness to pay for improved quality produced was measured using open ended questionnaire. Results showed that on average, households are consuming considerable number of peanuts, almonds, raisins, walnuts, pistachio and cashew. They have strong preferences for dried fruit and nuts consumption in winter season and they were aware of its dietary importance for a normal human growth. On average the probability of households to pay for improved version of the local dried fruit and nuts were 0.9 (90 percent) and they were willing to pay a price premium of 37percent for the improved quality version. Regression analysis shows that head’s education, job status, households’ perception of the importance of dried fruit for human health and monthly income of the respondents are important determinants of households’ WTP for dried fruit and nuts. As households were willing to pay considerable amount for improved quality version, the study recommends producers and processor to take necessary actions towards quality improvement of their produce. Awareness and introduction of oven drying techniques at subsidized rates can improve our products quality and their large-scale production.

Keywords: Dried Fruit and Nuts, Willingness to Pay, Contingent Valuation Method, Price Premium, Khyber Pakhtunkhwa, Pakistan.