Profitability and Resource Use Efficiency of Tomato Production Under Plastic Tunnel in Kathmandu, Nepal

Abstract

Tomato is one of the most important vegetable crops in Nepal, but its productivity and profitability are constrained by inefficient resource use and production-related challenges. A study was conducted in the Kathmandu district in 2024 to analyze the profitability and resource use efficiency of tomato production under plastic tunnels. Data from 150 farmers, selected by using simple random sampling technique, from Chandragiri, Tarakeshwar, and Kirtipur municipalities were collected through interviews using a semi-structured questionnaire. Analysis was performed using descriptive statistics, benefit-cost ratio, Cobb-Douglas production function, and multiple linear regression with SPSS and STATA software. The average production cost was NRs. 31.74 per kg of tomato, with a total production cost NRs. 1,979,921 per hectare, an average yield of 65,917 kg per hectare, a gross revenue of NRs. 3,534,467 per hectare, and a benefit-cost ratio of 1.77. Land rent, labor, seed, pest management were positively associated with gross revenue. The return to scale was nearly constant at 0.998. Resource use efficiency analysis indicated that land rent, labor, seeds, farm yard manure, pest management, and tillage costs were under-utilized, while chemical fertilizer and other associated costs were over-utilized. Key factors positively influencing revenue included education, group membership, extension advisory services, training, credit access, recommended variety use, and drip irrigation. Enhancing efficiency and profitability of tomato farming under plastic tunnel system in Nepal requires addressing inefficiencies, resource pooling, stakeholder collaboration, strong policies, and technology adoption.