An Economic Analysis of Tunnel Tomato Farming in Chandragiri Municipality, Kathmandu

Abstract

Agriculture is a major sub-sector of the Nepalese economy where 60.4 percent of the population are engaged producing varied fruits, crops, and vegetables throughout the year. Tomato cultivation is one of the most profitable and feasible crops to improve farmers’ socio-economic conditions and, about 21747 hectares of land is used to produce 413761 metric tons of tomatoes annually in Nepal. This study was conducted on order to analyze the tomato production and its market trend; to examine the cost benefit involved in tunnel farming of tomato; and to estimate the production function of tomato farming. The data was collected from 170 farmers involved in tomato farming in the Chandragiri municipality of Kathmandu district. using structured questionnaire. Three major cost components were taken, namely, total capital cost, total labour cost and total productivity cost. Net benefit per Ropani of land per year was calculated to examine the profitability of the tomato farming. Linear regression model by using Cobb Douglas production function was used where the variables are expressed in logarithmic form. The dependent variable is production output of tomato farming and independent variables are the total capital cost, total labour cost and total productivity cost. The results found that have not acquired the training for the farming as very few farmers are trained. Market price of tomato for farmers is determined by demand and supply of tomato in Kalimati vegetable market. Most of the farmers wanted assurance of stable selling price of tomato. There is very high fluctuation in selling price (Min Rs.5/kg and Max Rs.130/kg) of tomato. Average capital expense, productivity resource cost, labour cost, total cost of farmers during a year were found to be Rs. 128.5 thousand, Rs. 84.4 Rs. 138.8 and Rs.351.7 thousand per Ropani per year respectively. Average gross revenue per year is Rs.362.2 thousand per Ropani and average net benefit was Rs.10.5 thousand per Ropani per year. The coefficient of the total capital cost, total productivity resource cost and total labour cost in linear regression model in determining total production of tomato were 0.360, 0.311 and 0.256 respectively and statistically significant.