Economics of Tomato (Solanum lycopersicum L.) Production under Plastic Tunnel Technology in Peri-urban Areas of Kathmandu, Nepal

Abstract

Fresh vegetables, whether seasonal or off-seasonal, are seen as valuable crops in Nepal, and there is a strong push for their commercial production. Among them, tomato cultivation is widespread, with off-season tomato farming gaining traction for its greater financial returns compared to seasonal production. The main objective of this study was to examine the socio-demographic condition, economic aspects of tomato production in plastic tunnels, involving the estimation of the production function, problems and evaluation of the benefit-cost ratio. House-hold survey was conducted from May 5 to July 10, 2023, gathered data from 100 tunnel tomato growers from random sampling method from 3 wards (Chouketar Dahachok, Baad Bhanjyang and Thankot) in Chandragiri municipality, Kathmandu. We included 100 tunnel tomato growers (58 men, 42 women; age range 30-60 years). This study combined primary and secondary data sources. Primary data were collected from tomato farmers in Chandragiri municipality’s VDCs through face-to-face interviews using a pre-tested semi-structured questionnaire. Secondary data were sourced from various publications and reports, both published and unpublished. The semi-structured interviews featured open-ended questions designed to gather detailed information on socio-economic factors, demographics, resource availability, technical aspects, economic status, farm attributes, multiple regression based on the Cobb Douglas production function and farmer's views on the advantages and challenges of tomato cultivation under plastic tunnels. Results showed that price fluctuation was the major problem in the pivotal table. Most farmers (47%) were affected by blight and 49% by leaf miners. High labor cost NRs. 133794.04 increased the cost of production which was NRs 972555.9 but still farmers were benefitted with benefit cost ratio of 1.74, gross margin NRs. 2663355 and net profit NRs. 1690819.1. The research highlights the viability of tomato production in plastic tunnels, urging action on key constraints for potential growth. The use of plastic tunnel technology for tomato cultivation has become more popular among farmers in the peri-urban areas of Kathmandu Valley, providing year-round production and substantial economic benefits. This technology enables continuous growth of tomatoes, improving income during off-seasons and enhancing rural livelihoods. Although the study found tomato farming to be profitable despite high labor costs, farmers encounter numerous challenges, including natural disasters, pest infestations, disease, poor market access, and labor demands. Market-related problems such as fluctuating prices, middleman monopolies, and a lack of adequate storage and collection facilities further complicate the sale of produce, causing significant surplus losses. However, the study identifies several opportunities to improve tomato production for farmers in Chandragiri.