Economic feasibility of vegetable production under polyhouse cultivation
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Date
2016
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Department of Agricultural Economics, College of Horticulture, Vellanikkara
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 Emakulam, 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 m 2 salad cucumber and cowpea and for a polyhouse of standard size 400m . 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 m . 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 m 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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