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Economic feasibility of vegetable production under polyhouse cultivation

By: Swathylakshmi P V.
Contributor(s): Prema, A (Guide).
Material type: materialTypeLabelBookPublisher: Vellanikkara Department of Agricultural Economics, College of Horticulture 2016Description: 119p.Subject(s): Agricultural EconomicsDDC classification: 630.33 Online resources: Click here to access online Dissertation note: MSc Abstract: Polyhouse cultivation of vegetables is emerging as a specialized production technology to overcome biotic and abiotic stresses and to break the seasonal barrier to production. It also ensures round the year production of high value vegetables especially, during off-season. Recent statistics show that about 115 countries in the world are into polyhouse vegetable production. The area under polyhouse vegetable cultivation in India is around 2000 hectares. Since polyhouse production is a capital- intensive technology requiring substantial initial investment, cost is the major issue in sustaining this technology. The present study was undertaken to assess the economic feasibility of polyhouse cultivation of vegetables in Kerala. The profitability and resource use efficiency of vegetable production in polyhouse and open field situations and the factors which influence the decision making of farmers with regard to adoption of precision farming was also found. The major challenges faced by polyhouse farmers of Kerala were also enlisted. Out of the five agro ecological zones of Kerala, central and high range zones were selected as the study area, as these zones accounted for the maximum number of polyhouses in the state. In the high range zone both Idukki and Wayanad districts and from the central zone, the districts of Ernakulam, Thrissur and Palakkad were selected. Twenty polyhouse and 20 open field vegetable farmers selected randomly from each zone formed the respondents of the study. The number of respondents in a district was fixed proportional to the total number of farmers in the district concerned. Thus the total sample size comprises of 40 polyhouse vegetable farmers and 40 open field vegetable farmers. Data were collected by personal interview method using pre-tested structured interview schedules. The survey indicated that majority of the farmers owned polyhouses of area 400m2. . Salad cucumber and cowpea were the commonly cultivated polyhouse crops in the study area. Hence, economic analyses were conducted for the crops salad cucumber and cowpea and for a polyhouse of standard size 400m2. Comparative studies were done for cowpea alone, as farmers cultivating salad cucumber in open field were not available. Economic feasibility of vegetable production analyzed using Capital Productivity Analysis revealed that production of salad cucumber in polyhouse and cowpea in open field is highly feasible and profitable. Production of cowpea in polyhouse indicated unfavourable Benefit Cost Ratio, negative Net Present Value and low Internal Rate of Returns. When the resource use of cowpea production in polyhouse and open field was compared, production and net returns per unit area was found significantly high in cowpea cultivated in polyhouse. Nevertheless, the significantly higher value of seeds, quantity of soil ameliorants, manures, and bio control agents applied contributed to higher cost of cultivation along with the huge initial investment in polyhouse. The resource use efficiency of production was estimated using Cobb- Douglas production function. The best fit model for salad cucumber production in polyhouse could explain 59 per cent of the variations in the net returns per m2. Value of seeds, value of hired labour, quantity of soil ameliorants and fertilizers applied were the significant variables. The best model for cowpea in polyhouse could explain 57 per cent of variations in the net returns per m2. Value of hired labour and quantity of manures applied were the significant variables. Ninety four per cent of the variations in net returns per m2 could be explained by the selected functional model for cowpea production in the open field. The significant variables obtained were value of seeds, quantity of manures, fertilizers, plant protection chemicals and bio control agents applied. Increasing Returns to Scale was observed in the production of salad cucumber in polyhouse (1.60), cowpea in polyhouse (1.57) and cowpea in open field (2.01) conditions. The efficiency ratio of vegetable cultivation in polyhouse and open field estimated revealed that resources are not efficiently utilized in polyhouse cultivation of vegetables to the maximum economic advantage. When judged against the economic efficiency of the same inputs (fertilizers and growth promoters) used in polyhouse cultivation of cowpea, the economic efficiency in open field cultivation is seem advantageous. There was high level of agreement between the polyhouse farmers of the central and high range zone in enlisting the high initial investment involved, followed by farmer’s lack of technical knowledge, non availability of technical experts in local area and non availability of premium price for produce as the major challenges faced. The major benefits of polyhouse farming as perceived by the respondents included the possibility of growing and consuming safe vegetables, possibility of growing off season vegetables, better quality produce, higher yield and income obtained from polyhouse cultivation. The factors leading to a decision by the farmers towards shifting to polyhouse cultivation from open field cultivation subject to the extreme conditions of weather were found to be family income, size of land holding and education of the farmer, with odds ratios of 0.74, 0.72 and 0.68 respectively. Though polyhouse cultivation is a promising new technology, its suitability in Kerala conditions has to be studied extensively. Even though, institutional credit and subsidy schemes are well implemented to promote the technology, farmers are still in dilemma when it comes to cultivation aspects, for most of them it is a new venture. Higher Returns to Scale in polyhouse signifies its economic potential in large scale cultivation. Research efforts aimed at reducing the establishment cost of polyhouse should be initiated. The extension linkage has to be strengthened to aid the polyhouse farmers in selection of crops, cultivation, post harvest handling and marketing of produce.
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Reference Book 630.33 SWA/EC (Browse shelf) Not For Loan 174128

MSc

Polyhouse cultivation of vegetables is emerging as a specialized production
technology to overcome biotic and abiotic stresses and to break the seasonal barrier
to production. It also ensures round the year production of high value vegetables
especially, during off-season. Recent statistics show that about 115 countries in the
world are into polyhouse vegetable production. The area under polyhouse vegetable
cultivation in India is around 2000 hectares. Since polyhouse production is a capital-
intensive technology requiring substantial initial investment, cost is the major issue
in sustaining this technology.
The present study was undertaken to assess the economic feasibility of
polyhouse cultivation of vegetables in Kerala. The profitability and resource use
efficiency of vegetable production in polyhouse and open field situations and the
factors which influence the decision making of farmers with regard to adoption of
precision farming was also found. The major challenges faced by polyhouse farmers
of Kerala were also enlisted.
Out of the five agro ecological zones of Kerala, central and high range zones
were selected as the study area, as these zones accounted for the maximum number
of polyhouses in the state. In the high range zone both Idukki and Wayanad districts
and from the central zone, the districts of Ernakulam, Thrissur and Palakkad were
selected. Twenty polyhouse and 20 open field vegetable farmers selected randomly
from each zone formed the respondents of the study. The number of respondents in a
district was fixed proportional to the total number of farmers in the district
concerned. Thus the total sample size comprises of 40 polyhouse vegetable farmers
and 40 open field vegetable farmers. Data were collected by personal interview
method using pre-tested structured interview schedules.
The survey indicated that majority of the farmers owned polyhouses of area
400m2. . Salad cucumber and cowpea were the commonly cultivated polyhouse
crops in the study area. Hence, economic analyses were conducted for the crops
salad cucumber and cowpea and for a polyhouse of standard size 400m2.
Comparative studies were done for cowpea alone, as farmers cultivating salad
cucumber in open field were not available.
Economic feasibility of vegetable production analyzed using Capital
Productivity Analysis revealed that production of salad cucumber in polyhouse and
cowpea in open field is highly feasible and profitable. Production of cowpea in
polyhouse indicated unfavourable Benefit Cost Ratio, negative Net Present Value
and low Internal Rate of Returns. When the resource use of cowpea production in
polyhouse and open field was compared, production and net returns per unit area
was found significantly high in cowpea cultivated in polyhouse. Nevertheless, the
significantly higher value of seeds, quantity of soil ameliorants, manures, and bio
control agents applied contributed to higher cost of cultivation along with the huge
initial investment in polyhouse.
The resource use efficiency of production was estimated using Cobb-
Douglas production function. The best fit model for salad cucumber production in
polyhouse could explain 59 per cent of the variations in the net returns per m2.
Value of seeds, value of hired labour, quantity of soil ameliorants and fertilizers
applied were the significant variables. The best model for cowpea in polyhouse
could explain 57 per cent of variations in the net returns per m2. Value of hired
labour and quantity of manures applied were the significant variables. Ninety four
per cent of the variations in net returns per m2 could be explained by the selected
functional model for cowpea production in the open field. The significant variables
obtained were value of seeds, quantity of manures, fertilizers, plant protection
chemicals and bio control agents applied. Increasing Returns to Scale was observed
in the production of salad cucumber in polyhouse (1.60), cowpea in polyhouse
(1.57) and cowpea in open field (2.01) conditions.
The efficiency ratio of vegetable cultivation in polyhouse and open field
estimated revealed that resources are not efficiently utilized in polyhouse
cultivation of vegetables to the maximum economic advantage. When judged
against the economic efficiency of the same inputs (fertilizers and growth
promoters) used in polyhouse cultivation of cowpea, the economic efficiency in
open field cultivation is seem advantageous.
There was high level of agreement between the polyhouse farmers of the
central and high range zone in enlisting the high initial investment involved,
followed by farmer’s lack of technical knowledge, non availability of technical
experts in local area and non availability of premium price for produce as the major
challenges faced. The major benefits of polyhouse farming as perceived by the
respondents included the possibility of growing and consuming safe vegetables,
possibility of growing off season vegetables, better quality produce, higher yield
and income obtained from polyhouse cultivation.
The factors leading to a decision by the farmers towards shifting to
polyhouse cultivation from open field cultivation subject to the extreme conditions
of weather were found to be family income, size of land holding and education of
the farmer, with odds ratios of 0.74, 0.72 and 0.68 respectively.
Though polyhouse cultivation is a promising new technology, its suitability
in Kerala conditions has to be studied extensively. Even though, institutional credit
and subsidy schemes are well implemented to promote the technology, farmers are
still in dilemma when it comes to cultivation aspects, for most of them it is a new
venture. Higher Returns to Scale in polyhouse signifies its economic potential in
large scale cultivation. Research efforts aimed at reducing the establishment cost of
polyhouse should be initiated. The extension linkage has to be strengthened to aid
the polyhouse farmers in selection of crops, cultivation, post harvest handling and
marketing of produce.

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