Economics of open field tomato production in Punjab

Abstract

Food security becomes a global issue, especially in developing countries. Approximately 19.8% of GDP comes from agriculture in Pakistan. Increase in vegetable production is necessary for food security, eliminate poverty and increase in employment opportunities. There is no sufficient literature about the regression analysis in open field tomato production. Present study aims for the estimation of per acre costs, returns and determinants of revenue in open field tomato production in Punjab, Pakistan. Primary data were collected from 70 farmers with stratified random sampling. Cobb-Douglas model was applied for regression analysis. Total production cost was higher for medium farmers (Rs. 177,288.36) followed by small (Rs. 171,872.71) and large (Rs. 171,750.74) farmers. Total production was more for medium farmers (14,261.58 kg acre-1) while small farmers earned higher revenue (Rs. 484,545.90 acre-1) and price (Rs. 34.86 kg-1). According to BCR, small farmer received Rs. 2.83 by investing rupee one in this business as compared to medium (Rs. 2.59) and large (Rs. 2.49) farmers. Education, extension agent contacts, experience, seed quantity, chemical applications and marketing cost had a positive and significant impact on revenue. R 2 (0.856) and f-value (34.961) reflects the goodness of the regression model. Results have a support from previous studies, but it is a new addition in Pakistan. Price fluctuation, less extension services and disease attack were the main problems. The government should eliminate these problems. The government should improve the technical knowledge of farmers. Government should ensure the purity of agricultural inputs such as fertilizers, seed and chemicals.