net house cultivation of vegetables in Punjab An Economic Analysis

Chapter I

INTRODUCTION

Vegetables crops are useful in rotational system of farming to maintain the fertility of soil.
Vegetables are the main source of vitamins and minerals. The vegetable crops also offer
better crop diversification and crop intensification. India is the second largest vegetables
producer in the world next to China; however it’s per capita per day availability is well
below 92g whereas the recommended consumption is 284g. The vegetables crops in India
occupy only 2.8 percent of the total cultivated land, producing 110.27 million tonnes of
vegetables annually from a cropped area of 7.04 million hectares. The present production is
not sufficient to meet the requirement. The target can be achieved by bringing additional
area under vegetable crops, using hybrid seeds, improved agro techniques and perfection
and promotion of protected cultivation of vegetables (Singh et al 1999). As majority of the
population in India is vegetarian so, there is a strong need to increase production of
vegetables.

At the time of independence inspite of low population, the food problem was quite acute.
India imported food grains every year till the mid sixties and as a result India was becoming
a basket case. This puts heavy drain on foreign exchange reserves of the country. So the
government of India decided to adopt agricultural policies that promoted food grain
production in order to fight the problem of hunger. This objective was achieved with the
ushering in green revolution in the mid sixties that resulted in substantial increase in the
food grain production in the following years.

Agriculture of Punjab state has undergone many changes since the advent of the green
revolution. Agriculture slowly shifted from subsistence to commercialized one. Increase in
production due to high yielding varieties made wheat-paddy rotation quite popular in
Punjab. Secondly in order to face the food problem of growing population in India, the
Govt. of India announced the minimum support price for these two crops. Due to this wheat
paddy rotation further gained momentum in Punjab and these crops substituted for area
under other crops, especially oilseeds, pulses and course grains.

During the first few years, the economy of Punjab prospered with this rotation. But as the
time passed wheat paddy rotation has resulted in various problems related to soil such as
increased salinity and nutrient deficiency. Increase in incidence of insect pests and diseases
have also resulted due to discriminate use of pesticides. The excessive use of fertilizers for
increasing yield has also affected the natural fertility of the soil. Apart from these problems
lowered the underground water table becomes the most serious problem of Punjab now a
day.

Due to the above said reasons both Govt. and farmers of Punjab have realized that they
cannot go a long way with wheat paddy rotation. Therefore diversification of agriculture is
felt as a need now days to get rid of the various problems faced by the farmers of Punjab.

Vegetables farming seem to be a good replacement for the wheat paddy rotation, as
vegetable crops give high returns per unit area as compared to rice and wheat (Sharma et al
2000). Vegetable crops are more labour intensive as compared to cereals as a result they
provide more employment opportunities for hired labour as well as family labour (Singh
and Bhatti 1993). By providing better employment opportunities to family labour,
vegetables solve the problem of disguised unemployment of Punjab farmers.

But the framers are not willing to leave the paddy-wheat rotation because the vegetable
crops are more prone to attack of insects and pests; the other reason. The high-tech
production of vegetables under protected conditions is the recent development in this field.
Protected cultivation is capital intensive and has capacity not only to increase the
productivity of vegetables by many folds but also improves the quality of vegetables (Singh
et al 2008).

WHAT IS PROTECTED CULTIVATION

Protected cultivation means some level of control over plant microclimate to alleviate one
or more of abiotic stress for optimum plant growth which can be achieved in poly house/net
house. Crop yields can be several times higher than those under open field conditions,
quality of produce is superior, higher input use efficiencies are achieved. Net house and
poly house technology has been recommended for the cultivation of different vegetables.

Production of vegetables under protected conditions involves protection of production stage
of vegetables mainly from adverse environment conditions such as temperature, hails,
scorching sun, heavy rains, snow and frost (Singh et al 1999).

The production of off-season vegetable crops under net house conditions was evaluated for
total yield, earliness and other character and incidence of insect pests (Cheema et al 2004).
The cultivation of vegetables in net house can play a better role in improving quality,
advancing maturity as well as increasing fruiting span and productivity. Cultivation of
capsicum, brinjal and tomato is recommended in net house

Protected cultivation technologies are being utilized all over the world but the level and
extent of their use may be different among different countries. Therefore, it is necessary to
know the status of protected structures and the crop being grown there.

Punjab Agricultural University, Ludhiana has developed net house technology for the
vegetables cultivation. It reduced the dependence on environment and has capacity not only
to increase the productivity of vegetables by many folds but also improve the quality of
vegetables by reducing the use of insecticides and pesticides. The effect of chemical and
pesticides use is more harmful in vegetables as compared to other non-food crops. In recent
years increasing attention has been focused on several environmentally safe methods of pest
management. including net house cultivation to reduce pesticide use mainly because of
growing concern over food safety issues and environmental awareness

As the net house cultivation is new technology in Punjab agriculture, there is need to asses
the impact of technology on farmer’s income and its financial viability, keeping in view the
above facts. The present work concentrates on the following objectives.

To study the socio-economic profile of net-house vegetables growers.
To examine the yield, price, cost, and returns differentials of net house cultivation vis-à-vis
open cultivation.
To work out financial viability of net-house vegetables cultivation.
To study the constraints of net-house vegetables cultivation.

Chapter II

REVIEW OF LITERATURE

This chapter is devoted to review the studies closely related to the present research work. In
order to have a clear and in-depth understanding of the research investigation to be carried
out and to choose the suitable analytical technique, work done by the various researchers
pertinent to the present study has been reviewed. The relevant studies have been reviewed
in chronological order under the following sub-headings:

The studies related to economics of vegetable cultivation, resource use efficiency in
vegetables cultivation and protected cultivation of vegetables are reviewed.

Garg and Prashad (1974) conducted a study on comparative profitability of vegetable crops
in Kanpur city of Uttar Pradesh in India. The study showed that the highest net returns per
hectare were obtained from tomato and lowest return from brinjal, i.e., Rs.1799.48 and Rs.
1010.24 per hectare respectively. The results further showed that the investment and labour
used on vegetables were the highest for onion and lowest for' Lawki'. They also worked out
returns per man' day for tomato and wheat, which were Rs.39.40 and Rs.22.80.
respectively.

Rathore et al (1975) in their study on resources use efficiency and returns from cultivation
of commercial crops in Himachal Pradesh during 1973 -74 revealed that the average cost of
cultivation and cost of production of chillies were Rs. 5,958.75 per hectare and Rs. 620.70
per quintal. Human labour and bullock labours were the important cost items which
accounted 40.29 percent and 6.15 percent of the total cost.

Kapila et al (1985) studied vegetable production for diversification of the farm economy".
The study was conducted in Saproon valley of district Solan in Himachal Pradesh which is
known for the quality of vegetables. The study emphasized that diversification towards
intensive vegetable cultivation could enable farmers to get yields which are ten times higher
than cereal crops per unit of land. The diversification of farming with vegetable production
helps even the small farmers to earn sufficient income to make their livelihood. The results
showed that gross income of more than Rs.l.15,000 per hectare and a net increase of about

Rs. 70,000 to Rs. 90,000 per hectare per year could be obtained by producing cauliflower
seeds or two crops of tomatoes in the valley. It was concluded that the farmers can earn
high income annually by adopting diversification towards vegetable growing.

Shukla et al (1978) examined the economics of cropping system in the hilly areas of Pauri-
Garwal district of D.P. Patty Banalsuijn block of Pauri district was selected for the study. A
sample of 55 farmers grouped into four categories was taken into consideration. The results
indicated that potato with the least area under cultivation was the most profitable crop of the
study area. Potato yielded a net profit of Rs.2895.00 per hectare and an input-output ratio of
1.88. The second most profitable crop was chilly with a net profit of Rs.1355.43 per hectare
and an input-output ratio 1.73. Wheat was found to be the least profitable with a net income
of only Rs.170.35 per hectare in the study area.

Mishra and Saraf (1981) analyzed the economics of vegetable farming in the vicinity of
Jabalpur city. The objective of study was to estimate the costs and returns from different
vegetables. They also estimated the cost and returns of wheat and compared it with the cost
and returns of vegetables. They further worked out the cost of cultivation per hectare of
tomato crop which was maximum in small group and minimum in medium group and the
returns were the highest in medium group followed by small and large farms.

Mishra and Saraf (1987) conducted a study on Cost and return, labour employment and
marketing of vegetable crops in Jabalpur city of Madhya Pradesh. For this study, the
important vegetables (tomato, brinjal and cauliflower) were taken. The objective of the
study was to work out the cost and returns of important vegetable crops and the intensity of
labour employed. A sample of vegetable growers was selected at random from the villages
falling within a radius of 10 km from Jabalpur city. The study showed that the intensity of
cropping declined as the size of the farm increased. The net returns from tomato were the
highest with Rs.2037 per acre. The producer's share in the consumer's rupee in the
marketing of vegetables worked out to be 42 per cent.

Warner (1991) conducted a study in the German Republic to examine the prospect for
improving farm income from vegetable farming. The result showed that income from
vegetable farming was much higher than the income from traditional agriculture production.
Small farmers could experience the most significant increase in income by taking up
vegetable farming due to their higher degree of under employment prior to taking up
vegetable farming.

Sharma et al. (1992) examined the resource use efficiency and profitability of vegetable
farming in Himachal Pradesh. Kangra and Nagrota blocks of Kangra district were selected
for the purpose. A sample of 150 farms for the study was selected by two stage random
sampling technique. The study indicated that vegetable crops occupying 40.57 per cent of
the total cropped area accounted for 52 per cent of the gross returns whereas cereals
covering 42.48 per cent of the gross returns. This trend indicates that vegetable crops were
yielding high returns than that of cereals. The regression analysis related elasticity

coefficients for human labour was positively significant in case of all the vegetable crops
with an exception to chillies. The observation of the increasing returns to scale for potato,
peas, cauliflower and brinjal point towards an intensive use of inputs far obtaining higher
income from the vegetable crops.

Srivastava (1993) made an attempt to examine the economics of vegetable production in the
sub areas of Patna and its marketing in Patna as well as in the international market. The data
were collected from four villages, namely Pahari, Tulsimandi, Kasba and Karmalichak in
the center of Patna town. The sample size consisted of sixty marginal and small vegetable
growers. For retail sales study, 40 retailers spread over Gulzarbag Sabzimandi, Kanharbag
Sabzimandi, Musllahpur Latt and Mithapur Sabzimandi were selected randomly. Study
showed that the cost of cultivation per hectare was highest Rs.13,051.85 for cowpea. The
highest productivity was recorded in case of cabbage and cauliflower (275.23 q/ha). Highest
net returns per hectare were found in cowpea followed by sponge guard. Capital output
ratio was highest for cauliflower and cabbage (1:2:84) and lowest (1:2:02) for potato.

Thakur (1994) conducted a study on off-season vegetables in Kullu and Saproon valleys of
Kullu and Solan districts of Himachal pradesh, respectively. The main objective of the
study was to examine the cost of production, income and profit of these vegetables on per
hectare basis. A total sample of 50 vegetable growers was chosen from the ten villages
selected at random. Tomato, cauliflower, capsicum and peas were the vegetables considered
for the study. The results indicated that total cost of production was higher for tomato
followed by cauliflower, cabbage, capsicum and peas. Profits per hectare from tomatoes,
cauliflower, cabbage, capsicum, peas were Rs.145961.03, Rs.73900.27, Rs.68246.92,
Rs.46266.82, and Rs.44777.79, respectively. The study also highlighted that vegetable
cultivation was high labour intensive.

Peter (1995) reported that the cost of cultivation of chillies increased overtime due to the
high cost of labour and increased use of plant protection chemicals. The hired human labour
accounted for an average 20 per cent of the total cost of cultivation in Andhra Pradesh. The
cost of cultivation was Rs. 13, 287 on small and Rs. 13, 762 on large sized farms with an
average of Rs. 13,528 per hectare.

Kumar and Srivastava (1997) studied the influence of plastic coverings on the temperature
and relative humidity under low plastic tunnels in tomato field during the winter-spring
season in 1990-1991 at horticultural research centre, G.B Pant university of Agriculture and
Technology, Pantnagar. The minimum and maximum temperature and relative humidity
were significantly increased inside the polyethylene tunnels of all gauges viz. 200, 300 and
400 as compared to no cover in all the weeks. The 300 and 400 gauge plastic always proved
superior to lower gauge. The 100 perforations/ m2 always showed highest minimum
temperature whereas, maximum temperature continuously from 50 perforations to 150
perforations. In most of the weeks, perforations had no significant effect on relative
humidity.

Thakur et al (1997) conducted a study of seasonal vegetable in Kullu and found that the total
cost of production was higher for tomato followed by cauliflower, cabbage and capsicum.
The net profits were Rs. 145961, Rs. 73900, Rs. 68246, Rs. 46266 and Rs. 44777 per
hectare from tomato, cauliflower, cabbage, capsicum and pea respectively, in Himachal
Pradesh

Ganesam, M, (1999) found that the UV stabilized plastic film covered green house recorded
higher day temperature than the open environment but relative humidity at 8 am was lower
inside the green house except from May to August. The light intensity inside the green
house was lower than in the open. Height of the plant, number of nodes, internodes length
increase under green house conditions as compared to open field condition. The yield
performance inside the green house was highest 2145g per plant and 2156g per plant in the
first and second season (January to May and June to October) than the open field crops. The
fruit yield inside the green house was nearly two times more than in the open field
condition.

Mishra and Vishwakarma (1999) conducted a study in Azamgarh district of Uttar Pradesh
to work out the cost of cultivation of chillies. It was found that on an average input cost
came out to be Rs. 22439.22 where as the average gross income came out to be Rs.
50957.45 per hectare. So on an average net income come out to be Rs. 28518 per hectare.

Singh and Vishist (1999) made an attempt to examine the input output relationship, relative
profitability and the existing marketing system of major vegetable crops. Two stage random
sampling technique was used to select the sample of vegetable growers. A sample of 60
vegetable growers proportionally allocated to villages was selected. Cobb Douglas
production function was used to study the input-output relationships. Results revealed that
tomato was the most profitable crop in kharif season and cauliflower in rabi season. It
further showed that producers’ share in terms of consumers' rupee was very low due to
market intermediaries. It was found that major hurdles in the production of vegetables were
lack of technical know-how and natural calamities.

Sharma et al (2000) conducted a study on income and the employment from summer
vegetables vis-à-vis their competing crop (paddy) in Punjab. The results show that tomato
crop was most capital intensive with an expenditure of Rs.31642 per hectare against sponge
gourd which was Rs.16072 per hectare. The returns over production cost were highest for
tomato crop with Rs.26721 per hectare followed by capsicum and brinjal with Rs.25202
and Rs.23947 respectively. The returns over variable cost were highest for capsicum with
Rs.21244 followed by tomato and brinjal with Rs.21087 and Rs.21071 per hectare
respectively.

Radha and Prasad (2001) made an attempt to study economics of production and marketing
of vegetables in Karim Nagar district of Andhra Pradesh. The results revealed that though'
the cost of cultivation was highest in tomato with Rs.28055 per hectare yet net returns were
high in cauliflower with Rs.55792 per hectare followed by tomato with Rs.49758 per

hectare. The cost benefit ratio was highest for cauliflower (1:2.90) and lowest for bhindi
crop (1:0.28).

Prasad (2001) conducted a farm level study to determine the vegetable production and
marketing in Bihar and concluded that the vegetable crops were more profitable than other
crops particularly food crops and these crops were widely cultivated by small and marginal
farmers.

Singh et al (2001) studied the pattern of production and marketing of fruit crops in Punjab
and found that manures and fertilizer occupied major share in total cost of production. They
further found that proportion of the total produce marketed was the highest for grapes
(about 98%) followed by pear (95%) and guava (75%). They compared that cost of
transportation accounted for more than half of the total marketing cost for all the fruits. On
the basis of their study they concluded that efficient market infrastructure for horticultural
crops may help the farmers in selling their produce themselves and increasing their returns

Cheema et al. (2002) found that the production of off-season tomato crop under net house
conditions studies was initiated at the Vegetable Research Farm, Punjab Agricultural
University, Ludhiana (India). In the first year (2001-02), hybrids Avinash - 2 and Naveen
and a variety CLN 2026D were evaluated for total yield, earliness/other fruit characters and
incidence of insect pests. The results revealed that Naveen performed best in terms of total
fruit yield (2.87 kg/plant), marketable fruit yield (2.77 kg/plant) as compared to other
entries (1.76-2.08 kg/plant total yield and 1.51-1.91 kg/plant marketable fruit yield). Fruit
damage by only Spodoptera litura was noticed and found lower (3.00%) in Naveen as against
CLN 2026 D (9.64%). In the second year (2002-03), only hybrid Naveen was tested. The
results revealed that net house cultivation has extended the fruit availability of tomato from
last week of January to first week of June. Negligible fruit damage (1.43%) by S. litura was
recorded after following non-insecticidal methods of control. While, incidence of
Helicoverpa armigera (Hubner) and aphid, Aphis gossypii was nil which otherwise are serious
pests of tomato crop in open conditions. These studies have offered the possibility of raising
off-season crop of tomato and enhancing the fruit availability period by using non-chemical
methods of pest control.

Singh et al (2002) conducted a study on sustainable technology for peri-urban areas of
northern India. Protected cultivation of vegetables provides the best way to increase the
productivity and quality of vegetables especially cucurbits. The yield of some cucurbits like
cucumber can be increased manifold compared to open field cultivation. Normally the
economics of protected cultivation directly depends upon the initial cost of fabrication of
the protected structure, its running cost and the available market for the high quality
produce. Therefore, low cost protected structure, which can generally be fabricated just like
naturally ventilated green houses, walk in tunnels and plastic low tunnels are very suitable
for off-season cultivation of vegetables and highly economical for peri-urban areas of
northern plains of India.

Kumar and Singh (2002) studied the problems of vegetable production in Bharatpur district of
Rajasthan and reported that the vegetable growers faced the problems such as non-availability of inputs
at right time, poor and insufficient quality of inputs, non-availability of desired tomato varieties in the
market, high cost of inputs, lack of knowledge about the correct method of their use and non-
availability of subsidy. They further pointed out that these problems discouraged the vegetable growers
to give boost to vegetable farming. They suggested that extensive demonstrations of improved and high
yielding varieties of vegetable crops should be given; definite provisions should be made for timely
supply of crucial inputs at reasonable price and in adequate quantity to sustain vegetable production on
a profitable basis.

Vasava and Pandya (2003) studied the extension strategy for overcoming the major problems of mango
and tomato growers of tribal and non-tribal areas of South Gujarat. They reported that the growers
faced problems of high price of farm yard manure (F.Y.M) and chemical fertilizers, lack of knowledge
regarding plant protection measures and fertilizer application, lack of storage facilities, lack of
processing units, lack of knowledge about storage and processing, lack of road facility at village level,
low price of produce, problem of middlemen and quick deterioration of products. They suggested that
farmers should themselves prepare farm yard manure (F.Y.M.) and reduce the cost. Farmers must
establish cold storage and processing units at block level through the co-operative agricultural service
societies and government should support the agro-based industries. Training regarding storage and
processing should be organized by government and state agricultural universities. They further
suggested that government should fix appropriate selling price and marketing should be done through
co-operative agricultural service societies. Farmers should use good quality seeds of improved varieties
and adopt proper post-harvest technology and use preservation materials to prevent quick deterioration
of products.

Joshi and Srivastava (2003) conducted experiments during winter season of 1999-2000 and 2000-01 in
an unheated poly house. Six dates of sowing were tested for bitter gourd in randomized block design.
They found that the plants from earliest sowing date took least time (10 days) for seed germination
during both the years, which was even lesser than one third compared to the time taken by other dates
of sowing. The increased time taken by successive dates of sowing was obviously due to progressive
decrease in the atmospheric and soil temperatures.

Sharma et al. (2004) conducted a study to know the resources contributing to shift of land
from traditional crops to vegetables and the problems faced by 200 vegetable growers of
Punjab. The findings reported that 90.5 percent started vegetable cultivation due to the
reason of easy cash payment. Maximum area under summer and winter vegetables was 26
acres and 63 acres respectively season. More than fifty percent of the respondents were
interested to increase area under cultivation, 60.5 percent faced the problem of high cost of
fertilizers whereas 48.5 percent faced the problem of complexity of procedure for getting
loan from banks and 97.5 percent reported that no minimum support price was fixed by
Government for the produce. The problems such as vegetable glut in the market, lack of
regulated market, lack of storage facilities and exploitation by commission agents were
faced by 79.0, 46.0, 38.0 and 51.5 percent of respondents respectively. Further it was found
that 38.5 percent, 53.0 percent and 42.0 percent of the respondents lacked technical
knowledge regarding agronomic practices, plant protection measures, dose time and method
of application of fertilizers and pesticides respectively. Only 27.5 percent faced the problem
of non-availability of skilled labour.

Sekhon and Kaur (2004) studied the production scenario, economics and benefit of okra
cultivation. The total paid costs (cash costs) per acre were worked out as 96.32 per cent of
the total cost. Picking of okra is single most important item, which accounted for 58 per
cent of the total cost. Among the marketing cost the cost of transportation constitutes two
per cent because the market was situated in village itself or near by. The total paid out costs
were worked out to be Rs. 17,950 per acre for the year 2000. Gross returns came out to be
Rs. 25000 per acre for okra and Rs. 10335 for paddy. The returns over variable cost were
calculated as Rs. 7050 per acre, which is higher than its competing crop paddy with Rs.
5198 per acre.

Thyagarajan and Prabu (2005) studied the recommended technologies adopted by the tomato growers
of Tamil Nadu. They reported that the tomato growers faced the problems such as wide price
fluctuations, lack of knowledge to identify pests and diseases, high cost of labour, inadequate water
supply, non-availability of credit, exploitation by the middlemen by charging heavy rate of commission
and brokerage, lack of adequate transport and market facilities and lack of storage facilities at the
village level in the descending order. They suggested fixing a minimum economic price for tomato
throughout the entire season, arranging intensive training programmes for tomato growers especially
covering identification of pests and diseases, scientific storage and educating the farm labourers
through their leaders. They further suggested arranging adequate credit facilities and strengthening the
existing rural marketing facilities with cold storage to overcome the major constraints and to increase
the area, production and income of tomato growers.

Singh and Asrey (2005) studied the performance of tomato and sweet pepper under
unheated green house. The production of tomato and sweet pepper under medium cost
green house was found top the tune of 93.2 and 76.4 t/ ha respectively. It was of excellent
quality as compared to outside where the crop could not survive due to prevailing low
temperature. Among the three cultivars of tomato. Neveen (93.2t/ha) out yielded the other
cultivars Avinash-II (71.2 t/ ha) and Akash (73.7 t/ha). Thus, the studies have indicated that
cultivation of tomato and sweet pepper under green house would not only help in getting
higher productivity but also fetch better returns (Rs.7-8 per m2 per season.

Anonymous (2006 b) reported that Net house is necessary to produce good quality
vegetables and obtain higher yields. The budget for vegetable cultivation in the net house
shows that a small farmer (with capital subsidy assistance including some risk coverage)
starting from 0.5acre can earn more than Rs. 1 lac per year. Punjab Agricultural University
recommends the net house cultivation of Brinjal Hybrid, Capsicum- Bharat and Tomato-
Naveen. Tomato crop yielded 75Q/acre normal compared with total yield of 130Q/acre
from Naveen and 245Q/acre from TH-1 varieties in the open.

Dixit (2007) studied the performance of leafy vegetables under protected environment and
open field condition. Green house crops yield several times more than the yields obtained
from outdoor cultivation depending upon the cropping system and the degree of
environmental control. Because of environmental control, any crop can be grown at any
time of the year and even one type of the crops can be raised round the year if needed. An
experiment was conducted on leafy vegetables (Spianch, amarathus, fenugreek, and

coriander) at horticultural research farm, Indira Gandhi Agricultural University,
Raipur(C.G), to see the performance of leafy vegetables under protected environment and in
open field condition. As green house cultivation is capital intensive, heavy financial
investments are necessary especially in the initial years to construct and equip with
adequate environmental control devices. The initial heavy financial investment must be
compensated by additional crop yield and export oriented crops. The germination
percentage was found 10-20% more in green house as compared to open field. The yield
was found to be more as compared to open field condition. The study revealed that the
green house cultivation showed superior yield and yield attributing characters as compared
to open field condition.

Singh and Sirohi (2008) examined that protected cultivation vegetables offers distinct
advantages of quality, productivity and favourable market price to the growers. Vegetable
growers can substantially increase their income by protected cultivation of vegetables in
off-season as the vegetables produced during their normal season generally do not get good
returns due to large availability of these vegetables in the markets. Off-season cultivation of
cucurbits under low plastic tunnels is one of the most profitable technologies under northern
plains of India. Walk-in tunnels are also suitable and effective to raise off-season nursery
and off-season vegetable cultivation due to their low initial cost. Insect proof net houses can
be used for virus free cultivation of tomato, chilli, sweet pepper and other vegetables mainly
during the rainy season. These low coat structures are also suitable for growing pesticide
free green vegetables. Low cost green houses can be used for high quality vegetable
cultivation for long duration (6-10 months) mainly in peri-urban areas of the country to
fetch commensurate prices of produces. Polytrenches have proved extremely useful for
growing vegetables under cold desert condition in upper reaches of Himalayas in the
country.

The studies reviewed above have highlighted that the vegetables are more economical as
compared to the commercial crops. The returns from the vegetables are more than that of
the other crops. From the vegetables point of view the returns in tomato are maximum as
compare to other crops. The present study, therefore, attempts to study the input, yield and
returns of net house cultivation in comparison to the traditional cultivation of vegetables.

Chapter III

MATERIALS AND METHODS

The quality of any research is judged on the basis of its methodological approach. It is a
way to systematically solve the research problem. It explains not only the steps adopted by
a researcher in studying the research problem but also the logic behind them. The
methodological frame work adopted for the present study has been discussed under the
following headings:

3.1 Location of work

In order to achieve the stipulated objectives, present study was conducted in the Punjab
state. Sangrur district was selected purposively as most of the net house growers belong to
Sangrur district.

3.2 Sampling procedure

A list of net house cultivators was prepared with the help of concerned official of KVK’s,
PAU and official of horticulture department in Sangrur district. 50 net house cultivators
cultivating different vegetables were selected at random. An equal number of farmers doing
traditional cultivation of vegetables were also selected for the comparison purpose

3.3 Construction of Interview Schedule

A comprehensive schedule was prepared for the collection of information from the
respondents keeping in view the objectives of the study. Before starting the data collection
work, pre testing of the schedule was done among respondents in the same study area. The
questions which were undesirable, ambiguous or difficult to respond by the respondents
were simplified or deleted. Certain questions which emerged during the course of pre-
testing and considered important were also included in the final schedule. The primary data
was collected from the respondent farmers with the help of specially designed and pre-
tested schedule through personal interview method. The information data so collected
related to the size of family, education level of the farmers, operational holding, area under
net house, inputs used by the farmers labour used, vegetables grown under net house, price
of the product, inputs prices and total output from all the vegetables in a year was recorded
from the net house growers.

Similar type of information related to inputs used such as seed, fertilizer, pesticides and
labour etc. from traditional vegetable growers were collected.

3.4 Tabulation of data

The data is tabulated on the master sheet for further processing and analyzing

3.5 Analysis of data

. The data were analyzed with the help of statistical tools such as frequency, percentage and
T-test was applied.

Various concepts used in the study

The details of the various concepts used in the study are as under:

Gross returns

Gross returns for the vegetables were worked out by multiplying the total production by its
price received by the farmer either at farm level or at market level.

Returns over variable cost

Returns over variable cost were calculated by deducting the production variable cost as well
as marketing variable cost (total variable cost) from gross returns.

Variable cost

The sum of all the costs incurred on seed, fertilizer and manures, plant protection measures,
irrigation, farm machinery, hired labour along with miscellaneous cost and interest on the
working capital constituted the production costs.

Total working costs

In addition to the production cost, a substantial amount on packing material such as baskets/
bags etc. is incurred to take them to the market for disposal.

Apart from this, transportation costs to the market and marketing charges etc. are the other
expenses a vegetable grower has to spend before the product is finally disposed off. In this
way, the sum total of production variable cost along with marketing cost such as packing
cost, transportation and other marketing charges constituted the total variable cost. The
components of total variable cost are as follows.

Seed

This item included the value of purchased seed and seed treatment material at farm for
vegetable grown under net house and vegetable grown in open during study period. The
imputed value of owned seed produced was also accounted for at the prevailing market
price.

Fertilizers and manures

The item included the expenses incurred on the purchase of fertilizer and farm yard
manures. The farm yard manure on the farm was evaluated at the current prices prevailing
in the study area

Plant protection measures

The variable included the expenses incurred on the purchase of insecticides, fungicides,
weedicides etc. used for the various vegetable crops.

Irrigation charges

Due to implementation of free electricity for the agriculture, the irrigation charges included
only the expenditure made on the diesel oil for irrigation purpose and the hiring-in of
irrigation for the purpose.

Machinery charges

Machinery charges included the running expenditure such as diesel and mobil oil used for
owned farm machinery other than irrigation. The charges paid for the hiring-in of
machinery services were also included in this.

Hired labour

The hired labour component accounted for the wage payment made to the daily labour at
the farm for vegetables production. The value of perquisites if any, were also taken into
account

In order to work out the human labour hours used in the production of vegetables, female
and children labour hours were converted into man equivalent hours using the appropriate
weightage procedure; one woman hour was considered equivalent to ¾th of the man hour
and a child hour of below 15 years to ½ of a man hour, respectively.

Marketing cost

This term included the expenses incurred on transporting of vegetables from farm level to
the market, cost on packing material, such as baskets and bags etc and other terms such as
market fee, diesel oil charges, hiring-in charges, loading, unloading and other expenses for
the vegetables.

3.7 Operational holdings

The operational holdings of the respondents were classified according to standard
classification given by Govt. of Punjab, Statistical Abstracts.

Small farmers 1-2 ha

Semi-medium farmers 2-4 ha

Medium farmers 4-10 ha

Large farmers 10 ha and above
3.8 Educational level

It is the level of formal education of the head of the family unit ranging from illiterate to
post-graduate

3.9 Economic viability of net house

To evaluate the economic viability of net house the net present worth (NPW) and benefit-
cost ratio (BCR), pay back period and internal rate of return (IRR) have been computed by
utilizing discounted cash flow technique.

NPW is the difference between the sum of the present value of benefits and that of costs for
a given life period of the net house, it collates the total benefits with the total costs covering
items like capital and depreciation costs of the net house. In terms of the NPW criterion, the
investments on the net house can be treated as economically viable if the present value of
benefits is greater than the present value of costs.

BCR is also related to NPW as it is obtained just by dividing the present worth of the
benefit stream with that of the cost stream. Pay back period is the length of time required
for an investment to pay itself out.

Pay back period is the length of time required for an investment to pay itself out.

IRR is that discount rate which just makes the net present value (NPV) of cash flow equal
to zero. It is also called yield of the investment.

Generally if the BCR ratio is greater than one, then the investment of that project can be
considered as economically viable. If BCR is greater than one then the NPW of the benefit
stream is higher than that of the cost stream. The NPW, BCR and IRR can be defined as
follows:

NPW = ∑ (Bn-Cn)/ (1+i) n

∑ (Bn)/ (1+i) n

BCR = ------------------------

∑ (Cn)/ (1+i) n

PBP = I / E

IRR = ∑ (Bn-Cn) / (1+i) n = 0 i.e. NPV = 0

Where Bn = benefit in year t.

Cn = cost in the year.

n = project life in years.

I = the initial investment.

E = the projected net cash flows per year from the investment.

i = rate of discount (or the assumed opportunity cost of the investment).

Bn-Cn = cash flow in nth years.

Chapter IV

RESULT AND DISCUSSION
Vegetables are main source of vitamins and minerals required for the human body and
essential part of the balanced diet. As most of the population in India is vegetarian,
therefore there is strong need to increase production of vegetables. Vegetable production is
a good substitute for the wheat-paddy rotation also; but farmers in general are slow adopter
of this enterprise, due to its heavy dependence on the weather. Protection technology for
vegetable cultivation has been introduced called net house. In order to check the economic
viability of net house cultivation of vegetable, various aspects of vegetable production were
studied. This chapter mainly deals with the examination of results obtained through the
analysis of the data collection; and were classified into four sections, as follows:

4.1 Socio-economic profile of net house vegetable growers.

4.2 Yield, price, cost and returns differentials of net house cultivation vis-à-vis traditional

cultivation.

4.3 Financial viability of net house cultivation of vegetables

4.4 Constraints faced by the producer/farmers of net house cultivation.

SECTION I

4.1 Socio-economic profile of net house and traditional vegetable growers.

To discuss socio-economic profile of the respondents growing vegetables under net house
and with traditional method, some features of net house had been discussed.

4.1.1 Salient features of net house growers.

4.1.1.1 Different categories of farmers according to the operational holdings.

In the given table the farmers are categories in 4 different groups according to the standard
classification followed by Govt. of Punjab, Statistical Abstracts. As vegetable cultivation is
labour intensive enterprise, it is hypothesized that marginal and small farmers will actually
participate in the adoption of this technology. It was observed from the table that higher

adoption level of net house technology is in case of medium farmers i.e. 32 percent
followed by large farmers 26 percent. In net house cultivation of vegetables farmers had
operational area between 2.5-5 acres belong to small farmer’s categories.

Table 4.1.1.1 Distribution of farmers according to the operational holdings

(Acres)

Net House cultivation
Traditional cultivation
Net House cultivation Traditional cultivation
Average
Categories Number Average Area Number Area

Small farmers (2.5-5 ) 10 4.40 8 3.75

Semi-medium farmers (5-10 ) 11 7.55 11 9.00

Medium farmers (10-25) 16 16.12 15 17.60

Large farmers (25 and above) 13 49.10 16 51.15
In traditional cultivation of vegetables farmers having operational area between 2.5-5 acres
belong to small farmer categories and in the given sample of 50 farmers 8 farmers belong to
this group and have an average area of 3.75 acres. Farmers having operational area 5-10
acres belong to semi-medium farmers’ group and 11 farmers belong to this group have an
average area of 9 acres. Farmers having operational area between 10-25 acres belong to
medium farmers’ group and nearly 15 farmers belong to this group having an average area
of 17.6 acres and the last is large farmer categories having operational area above 25 acres
of land and to this group nearly 16 farmers are there with an average operational area of
51.15 acres.

From the above table we conclude that in net house most of the farmers are medium farmers
having average land of 16 acres followed by large farmers having average land of 49 acres
and in open cultivation of vegetables most of the farmers are large farmers having average
operational area of 51 acres followed by medium farmers having average land of 17.6 acres.

4.1.1.2 Year of installment of net house

Table 4.1.1.2 Distribution of net-house vegetable growers according
to period of installation
Table 4.1.1.2 Distribution of net-house vegetable growers according
to period of installation Table 4.1.1.2 Distribution of net-house
vegetable growers according to period of installation

Year of installing net house No. %age

Before 2000 1 2.00

2000-2002 2 4.00

2003-2005 18 36.00

2006-2007 29 58.00
This table indicates the distribution of net house growers according to years in which the
net house was installed. According to the figures 58 percent of the net were installed in the
time period from 2006 to 2007, 36 percent of the net were installed from 2003 to 2005, 4
percent of the net were installed from 2000 to 2002 and according to the data 2 percent of
the net were installed before 2000. These facts highlight the importance of protected
technology, as the increase trend was observed for the adoption of this technology.

4.1.1.3 Material required for installing net house

The table 4.1.1.3 shows the material required for installing a net house of different
sizes. It was observed thatRs.51420 is invested in net house of I kanal followed by net
house of 2 kanal, 4 kanal, and 1 acre that is Rs.98500, Rs.188550 and Rs.358045
respectively.

The materials used in installment of net house are M.S pipes, G.I wires, iron angles, Round
Basils, kunde and kabje, cement+sand+pebbles, paint, U.V net sheet etc.

Maximum investment is in case of M.S pipes that of Rs.20000 in case of 1 kanal net
followed by Rs. 38000 in 2 kanal net and nearly Rs.138000 in case of 1 acre net house
followed by U.V sheets that in case of 1 kanal net house Rs. 19000 are required and in case
of 2 kanal net house investment in U.V sheets is nearly 37500 rupees and iron angles which
cost Rs.1500 for 1kanal net house and nearly Rs.7500 for 1 acre net house.

Table 4.1.1.3 Material required for installing net house

(Rs./kanal)
Table 4.1.1.3 Material required for installing net house Table 4.1.1.3 Material
required for installing net house Table 4.1.1.3 Material required for installing net
house Table 4.1.1.3 Material required for installing net house

(Rs./kanal)
(Rs./kanal)
(Rs./kanal)
(Rs./kanal)

Material required 1 kanal 2 kanal 4 kanal 8 kanal

M.S Pipes 20000 38000 72000 138000

G.I wires 500 1200 2500 5200

Iron angles 1500 2500 4000 7500

Round Basils 150 250 450 1000

Kunde and kabje 120 250 500 945

Cement+Sand+Pebbles 1600 2800 5200 9800

Paint 550 1000 1900 3600

U.V net sheet 19000 37500 74000 140000

Labour and miscellaneous 8000 15000 28000 52000
Total 51420 98500 188550 358045
In this we have taken labour cost in miscellaneous cost that is in case of I kanal net house
this cost is Rs.8000 and in case of 1 acre net house this cost is nearly 52000 rupees

From the above table we conclude that 1 acre net house is more economical as compared to
1kanal, 2 kanal and 4 kanal net house as 1 acre of net house is 8 times that of 1 kanal net
house but the cost of installing a 1 acre net house the cost is not 8 times than that of 1 kanal
net house that is Rs.358045 but its should be 411360 rupees which about Rs.53315 costly if
we have to construct 8 net houses of 1 kanal.

Table 4.1.1.4 Amount of subsidy and loan taken by the farmers during that year2006-07

Average Rate of Amount of No. of
Categories Amount(Rs.) Interest (%) subsidy farmers

Small farmers (2.5-5 ) 79000 11 16500 5

Semi-medium farmers 16500 4
(5-10 ) 191818.2 10

Medium farmers (10-25) 516875 11 16500 6

Large farmers (25 and above) 51111.11 12 16500 5

This table shows the credit taken by the farmers of different categories. The farmers belonging
to small categories have taken an average credit amount of Rs.79000 with a rate of interest of 11
percent; the farmers belonging to semi-medium got an average credit amount of Rs.191818.2
with a rate of interest of 10 percent; the farmers belonging to medium categories have taken
average credit of Rs.516875 with a rate of interest of 11percent and at the last is the large
farmers those have taken an credit of amount of Rs.51111.11 with a rate of interest of 12
percent.

The farmers have taken the loan from the institutions sources that are from the banks and
these loans were for many purposes like for installing net house, for buying inputs etc.

The farmers get Rs.16500 as subsidy and most of the medium farmers had got the subsidy
and number of farmers belongs to small and large farmers are equal in number those who
had got the subsidy and least number of farmers those who got the subsidy belong to semi-
medium farmers.

4.1.2 Socio-economic profile of net house and Traditional vegetable growers.

The data pertaining to distribution of the farmers according to their socio-personal
characteristics have been presented in Table 4.1.1. The details of each of these
characteristics have been described as under:

4.1.2.1 Age of the respondent

The respondents/farmers were divided into two categories namely net house growers and
open growers. The data given in Table 4.1.1 indicate that age of the respondents varied
from 26 to above 51 years. In the first group of net house cultivation 40 percent of the
respondents belonged to the age group of 36 to 50 years, 34.00 per cent belonged to the age
group of 26 to 35 years and the remaining 26.00 per cent respondents were in the age group
of above 50 years.

In the second group of farmers 46 percent of the respondents belonged to the age group of
51 and above, 32 percent belonged to the age group of 36 to50 years and the remaining 22
percent respondents were in the group of 26 to 35 years

4.1.2.2 Education of the farmer

Education is an important determinant of socio-economic conditions of the farm family;
particularly the education of the head of the family. It was observed that 10 per cent of the
respondents were uneducated, 4 per cent educated up to primary level, 58 per cent up to
matric and senior secondary level and most of them (24%) were graduate and the remaining
(4%) were post graduates.

In case of traditional cultivation vegetables growers most of the respondents (50%) have
education up to primary level, 22 percent of the respondents were uneducated, 16 percent of

the respondents have education up to matric and senior secondary level, the remaining
respondents (12%) were graduate and non of the respondents were postgraduate.

Table 4.1.2 Socio-economic profile of net-house and traditional vegetable
growers in Punjab
Table 4.1.2 Socio-economic profile of net-house and traditional vegetable
growers in Punjab Table 4.1.2 Socio-economic profile of net-house and
traditional vegetable growers in Punjab Table 4.1.2 Socio-economic
profile of net-house and traditional vegetable growers in Punjab Table
4.1.2 Socio-economic profile of net-house and traditional vegetable
growers in Punjab

Net-House vegetables
growers Traditional
vegetables growers
Net-House vegetables Traditional vegetables
Socio-Economic parameters growers growers
Characteristics No. %age No. %age

A. Age of the respondent (years)

26-35 17 34.00 11 22.00

36-50 20 40.00 16 32.00

51 and above 13 26.00 23 46.00

B. Education of the respondent

Illiterate 5 10.00 11 22.00

Primary 2 4.00 25 50.00

Martic and above 29 58.00 8 16.00

Graduate 12 24.00 6 12.00

Postgraduate 2 4.00 0 0.00
C. Occupation

Farming 50 100.00 50 100.00

Others 5 10.00 10 20.00

D. Extension Contacts

Visits to PAU kisan mela 31 62.00 17 34.00

Training Courses related to net house 11 22.00 3 6.00

Member of cooperative society 40 80.00 30 60.00

Member of Kisan sabha 13 26.00 8 16.00
4.1.2.3 Occupation of the respondents

The figure in the table 4.1.1 indicates the occupation of net house growers and that of the traditional
cultivators of vegetables. According to the figures in both the cases that are in net house and
traditional cultivation the main occupation of the farmers is farming. In case of net house cultivation
10 percent of the farmers are also involved in other activities and in traditional cultivation 20 percent
of the farmers are involved in other activities like sericulture and bee keeping etc.

4.1.2.4 Extension Contacts of the farmers

The figure in the table 4.1.1 highlights the extension contacts of net house vegetable cultivation
farmers and open farmer cultivation of vegetables. According to the figures net house farmers, 80
percent of the farmers are the members of cooperative society, 62 percent of the farmers have visited
to PAU kisan mela, 26 percent of the farmers are the members of kisan sahba, and 8 percent are the
members of the panchayat and nearly 22 percent of the farmers have attended the training courses.

In case of traditional cultivation farmers, 60 percent of the farmers are the member of cooperative
society, 34 percent of the farmers have visited to PAU kisan mela, 16 percent of the farmers are the
members of kisan sahba, 2 percent are the members of panchayat and nearly 6 percent of the farmers
have attended the training courses sericulture and bee keeping.

4.1.3 Area under net house

Table 4.1.3 Distribution of net-house vegetable growers according to
area under net-house
Table 4.1.3 Distribution of net-house vegetable growers according to
area under net-house Table 4.1.3 Distribution of net-house vegetable
growers according to area under net-house

Area net house cultivation No. %age

1 kanal 12 24.00

2 kanal 23 46.00

4 kanal 4 8.00

Above 4 kanal 11 22.00
This table indicates the distribution of net house vegetable growers according to area under
net house. According to figures maximum (46%) of the net house have area from 1 to 2
kanals, 24 percent have area up to 1 kanal, 22 percent have area more than 4 kanals and the
remaining 8 percent have area 2 kanals.

4.1.4 Operational holdings

According to table 4.1.4 average operational holding of the farmer is nearly 20.35 acres,
whereas average owned land is 13.15 acres, and farmer has average leased-in land 7.41
acres, and very less area has been give leased-out that is just 0.21 acres.

74.00 percent of the land has very high fertility, 26.00 percent of the land has not too high
not too low fertility and none of the farmers says that their land is less fertile.

Table 4.1.4 Particulars about operational holdings of net-house vegetable growers

Particulars Average %age

Operational Holding (acres)

Owned Land 13.15 64.62

Leased-in land 7.41 36.41

Leased-out land 0.21 1.03

Operational Area 20.35

Fertility Status of Soil No.

Low 0 0.00

Medium 13 26.00

High 37 74.00

Rental value of Land 18102

Value of owned land 953846
4.1.4.3 Rental value of land

The average rental value of the land is about Rs.18102 per acre and the average value of the
owned land is about Rs.953846 per acre.

4.1.5 Total number of farmers and area under different vegetables in
traditional and net house cultivation of vegetables.

The table 4.1.5 shows the major vegetables grown by the farmers in net house and by other
farmers. The vegetable pattern followed in the net house are, maximum area is under
capsicum that near about 8 acres and nearly 60 percent of the farmers grows capsicum
under net house followed by tomato that is area under tomato is nearly 7 acres and 28
percent of the total no of farmers grow tomato under net house and in case of chilli, peas
and potato area under net house is nearly 5 acres, 3 acres and 2 acres respectively and no of
farmers under net house growing chilli, peas and potato is 17, 16 and 5 farmers that is 34
percent, 32 percent and 10 percent respectively.

Table 4.1.5 Total number of farmers and area under different vegetables
in traditional and net house cultivation (area in acres)
in traditional and net house cultivation (area in acres) Table 4.1.5 Total
number of farmers and area under different vegetables in traditional and
net house cultivation (area in acres) Table 4.1.5 Total number of farmers
and area under different vegetables in traditional and net house cultivation
(area in acres) Table 4.1.5 Total number of farmers and area under
different vegetables in traditional and net house cultivation (area in acres)
in traditional and net house cultivation (area in acres) Table 4.1.5 Total
number of farmers and area under different vegetables in traditional and
net house cultivation (area in acres)

Net house cultivation Net house cultivation Net house

cultivation Traditional cultivation
no of Percentage of no of Percentage of
Vegetables Area farmers farmers Area farmers farmers

Tomato 7 28 56 13 10 20

Capsicum 8 30 60 9 8 16

Potato 2 5 10 74 25 50

Chilli 5 17 34 15 10 20

Peas 3 16 32 20 15 30
In case of traditional cultivation maximum area is under potato that near about 74 acres and
nearly 50 percent of the farmers grows potato in open followed by peas that is area under
peas is nearly 20 acres and 30 percent of the total no of farmers grow peas in traditional
cultivation and in case of chilli, tomato and capsicum area under open cultivation is nearly
15 acres, 13 acres and 9 acres respectively and no of farmers in traditional cultivation
growing chilli, tomato and capsicum is 10, 15 and 8 farmers that is 20 percent, 30 percent
and 16 percent respectively.

SECTION II

4.2 Yield, price, cost and returns differentials of net house cultivation vis-à-vis open cultivation.

The input output coefficients were marked out for different vegetables separately under net
house cultivation and open cultivation. The vegetables that is chilli, potato, tomato, peas
and capsicum were grown by the vegetable growers.

4.2.1 Economics of Chilli Production

4.2.1.1 Cost of production

The results pertaining to the magnitude and composition of production variable and the
marketing cost worked out in both the case that is in net house and in open cultivation for
this crop on different size categories of the farm in the study area are incorporated in the
table 4.2.1.

In case of net house cultivation of chilli the variable costs were worked out was
Rs.31963.36/acre, 85.4 percent was the variable cost and the remaining 14.6 percent was
marketing cost. The structure of the total variable cost showed that the highest proportion
was spent on labour with 70.59 percent followed by seed, fertilizer and FYM, plant

protection, machinery and irrigation charges with 9.84 percent, 9.62 percent, 6.14 percent,
2.39 percent, and 1.414 percent respectively.

In case of traditional cultivation of chilli the variable cost was worked out was
the marketing cost. The structure of the variable cost showed that the highest proportion of
coat was on labour (69.33 percent) followed by fertilizer and FYM, seed plant protection,
machinery and irrigation charges with 9.8 percent, 9.32 percent, 7.23 percent, 2.79 percent,
and 1.58 percent respectively.

The comparative analysis of cost of production of chilli in net house cultivation and
traditional cultivation indicated that in traditional cultivation of chilli variable cost is
Rs.3221.87 more than that cultivating chilli in net house.

Table 4.2.1 Economics of net-house and traditional cultivation of chilli
Table 4.2.1 Economics of net-house and traditional cultivation of chilli Table
4.2.1 Economics of net-house and traditional cultivation of chilli Table 4.2.1
Economics of net-house and traditional cultivation of chilli

(Rs./ acre)
(Rs./ acre) (Rs./ acre) (Rs./ acre)
Particulars Net-House Traditional t-value

A. Cost Structure

Seed 3143.78 3294.61 1.37ns

Fertilizers and FYM 3076.64 3448.53 3.58***

Labour 22564.21 24509.87 2.13**

Plant Protection 1963.85 2557.13 2.69***

Irrigation 452.11 561.27 1.98**

Machinery 763.37 984.69 2.29**

Variable Cost 31963.36 35356.1

Marketing Cost 5468.15 5297.88 1.78*

Total working cost 37432.11 40653.98 3.19***

B. Returns Structure

Production (Qtl) 133.84 108.56 2.45**

Sale Price (Rs./Qtl) 714.68 672.64 1.13ns

Gross Returns 95652.77 73021.80 6.48***

Net Returns 58220.66 32367.82 7.13***

***, **, * : significant at 1%, 5% and 10% level respectively
***, **, * : significant at 1%, 5% and 10% level respectively ***, **, * :
significant at 1%, 5% and 10% level respectively ***, **, * : significant at 1%,
5% and 10% level respectively
4.2.1.2 Returns

The information regarding the returns from chilli per acre basis is given in the table 4.2.1.
The results revealed that in case of net house cultivation of chilli an average farmer
received Rs. 95652.77 as gross returns whereas net returns come out to be Rs.58220.66/acre

In case of open cultivation of vegetables an average farmer received Rs.73021.80 as gross
return whereas net returns come out to be Rs.32367.98/acre.

The comparison of returns from chilli under net house and traditional cultivation of chilli
indicated that in traditional cultivation of chilli the production is 25.28 quintals less than the
production from net house cultivation. The sale price which the farmers get Rs. 42.04/
quintals more in case of net house cultivation than from traditional cultivation of chilli. The
gross returns from net house cultivation are Rs. 22630.97/acre more than from traditional
cultivation of chilli. Net return from net house is Rs. 25852.84/acre more than traditional
cultivation of chilli.

4.2.2 Economics of Peas Production


marketing cost worked out in both the case that is in net house and in traditional cultivation
for this crop on different size categories of the farm in the study area are incorporated in the
table 4.2.2.

In case of net house cultivation of peas the variable cost was worked out to be Rs.12774.41/
acre. Out of this 67.4 percent was the variable cost and the remaining 32.6 percent was
marketing cost. The structure of the variable cost showed that the highest proportion was
spent on labour with 78.03 percent followed by seed, fertilizer and FYM, plant protection,
machinery and irrigation charges with 10.62 percent, 5.87 percent, 1.29 percent, 2.9
percent, and 1.34 percent respectively.

In case of traditional house cultivation of peas the variable cost was worked out to be Rs.
11486.8/acre. 67.08 percent was the variable cost and the remaining 32.92 percent was the
spent on labour with 72.16 percent followed by fertilizer and FYM, seed, plant protection,

If we study the comparative study of cost of production of peas in net house cultivation and
open cultivation the information per acre basis indicated that in open cultivation of peas
variable cost is Rs.1838.14 less than that cultivating peas in net house.

Table 4.2.2 Economics of net-house and traditional cultivation of peas
Table 4.2.2 Economics of net-house and traditional cultivation of peas Table 4.2.2
Economics of net-house and traditional cultivation of peas Table 4.2.2 Economics of
net-house and traditional cultivation of peas

(Rs./ acre)


A. Cost Structure

Seed 1356.61 1267.34 1.62ns

Fertilizers and FYM 749.67 1126.91 2.19**

Labour 9967.63 8288.43 2.14**

Plant Protection 164.22 198.44 1.13ns

Irrigation 171.47 214.19 2.01**

Machinery 364.81 391.49 1.34ns

Variable Cost 12774.41 11486.8

Marketing Cost 6187.64 5637.11 2.31**

Total working cost 18962.05 17123.91 2.49**

Production (Qtl) 45.59 40.39 2.16***

Sale Price (Rs./Qtl) 611.43 582.07 1.87*

Gross Returns 27875.09 23509.81 4.69***

Net Returns 8913.04 6385.90 6.21***
4.2.2.2 Returns

The information regarding the returns from peas per acre basis is given in the table 4.2.2.
The results revealed that in case of net house cultivation of vegetable an average farmer
received Rs. 27875.09/acre as gross returns whereas net returns come out to be Rs.8913.04

In case of traditional cultivation of vegetables an average farmer received Rs.23509.81/acre
as gross return whereas net returns come out to be Rs.6385.90/acre.

The comparison of returns from peas under net house and traditional cultivation of peas the
information per acre basis indicated that in traditional cultivation of peas the production is
5.2 quintals less than the production from net house cultivation. The sale price which the
farmers get Rs. 29.36 more in case of net house cultivation than from traditional cultivation
of peas. The gross returns from net house cultivation are Rs. 4365.28/acre more than from
traditional cultivation of peas. Net returns from net house are Rs. 2527.14/acre more than
traditional cultivation of peas.

4.2.3 Economics of Potato Production.


table 4.2.3.

In case of net house cultivation of potato the variable cost was worked out to be
spent on seed with 66.55 percent followed by labour, fertilizer and FYM, plant protection,

In case of open house cultivation of potato the variable cost was worked out to be Rs.
14787.92/acre, 70.67 percent was the variable cost and the remaining 29.33 percent was the
spent on seed with 63.87 percent followed by fertilizer and FYM, labour, plant protection
and machinery and irrigation charges with 9.58 percent, 10.97 percent, 4.72 percent, 7.38
percent and 3.48 percent respectively.

The comparative analysis of cost of production of potato in net house cultivation and open
cultivation the information per acre basis indicated that in open cultivation of potato
variable cost is Rs.1351.01/acre less than that cultivating potato in net house.

Table 4.2.3 Economics of net-house and Traditional cultivation of potato
Table 4.2.3 Economics of net-house and Traditional cultivation of potato Table
4.2.3 Economics of net-house and Traditional cultivation of potato Table 4.2.3
Economics of net-house and Traditional cultivation of potato

Rs./ acre)
Rs./ acre) Rs./ acre) Rs./ acre)

A. Cost Structure

Seed 9884.13 9445.51 2.54**


Labour 2183.84 1621.67 2.89***

Plant Protection 464.56 698.63 2.48**

Irrigation 471.22 514.19 0.98ns

Machinery 964.81 1091.49 0.71ns

Variable cost 14852.77 14787.92

Marketing Cost 7423.78 6137.62 2.99***


Production (Qtl) 76.54 58.29 2.26**

Sale Price (Rs./Qtl) 537.59 481.15 1.97**

Gross Returns 41147.14 28046.23 4.91***

Net Returns 18870.59 7120.69 5.52***

***, **, * : significant at 1%, 5% and 10% level respectively
***, **, * : significant at 1%, 5% and 10% level respectively ***, **, * : significant
at 1%, 5% and 10% level respectively ***, **, * : significant at 1%, 5% and 10%

level respectively
4.2.3.2 Returns

The information regarding the returns from potato per acre basis is given in the table 4.2.3.
received Rs. 41147.14/acre as gross returns whereas net returns come out to be
Rs.18870.59/acre.

In case of open cultivation of vegetables an average farmer received Rs.28046.23/acre as
gross return whereas net returns come out to be Rs.7120.69/acre.

The comparison of returns from potato under net house and traditional cultivation of potato
the information per acre basis indicated that in traditional cultivation of potato the
production is 18.25 quintals less than the production from net house cultivation. The sale
price which the farmers get Rs.56.44 more in case of net house cultivation than from open
cultivation of potato. The gross returns from net house cultivation are Rs.13100.91/acre
more than from traditional cultivation of potato. Net returns from net house are Rs.11749.9/
acre more than traditional cultivation of potato.

4.2.4 Economics of Tomato Production.


marketing cost worked out in both the case that is in net house and in traditional cultivation
for this crop on different size categories of the farm in the study area are incorporated in the
table 4.2.4.

In case of net house cultivation of tomato the variable cost was worked out to be
machinery and irrigation charges with 11.9 percent, 10.8 percent, 2.45 percent, 7.12 percent
and 2.32 percent respectively.

In case of traditional house cultivation of tomato the variable cost was worked out to be Rs.
17803.78/acre, 66.74 percent was the variable cost and the remaining 33.26 percent was the
marketing cost. The structure of the total variable cost showed that the highest proportion
was spent on labour with 57.16 percent followed by fertilizer and FYM, seed, plant
protection and machinery and irrigation charges with 15.99 percent, 12.12 percent, 4.33
percent, 7.57 percent and 2.83 percent respectively.

The comparative analysis of cost of production of tomato in net house cultivation and
traditional cultivation the information per acre basis indicated that in traditional cultivation
of tomato variable cost is Rs.3732.93/acre less than that cultivating tomato in net house.

Table 4.2.4 Economics of net-house and Traditional cultivation of tomato

(Rs./ acre)

A. Cost Structure

Seed 2363.52 2157.68 1.33ns


Labour 12952.43 10177.15 3.51***

Plant Protection 484.96 771.37 3.19***

Irrigation 459.77 503.22 1.58ns

Machinery 1411.37 1348.63 1.41ns

Variable cost 19521.63 17803.78

Marketing Cost 10587.51 8872.43 3.16***

Total working cost 30109.14 26676.21 2.91***

Production (Qtl) 157.33 89.34 3.17***

Sale Price (Rs./Qtl) 1257.41 1033.64 2.24**

Gross Returns 197828.32 92345.40 3.69***

Net Returns 167719.18 65669.19 4.21***

***, **, * : significant at 1%, 5% and 10% level respectively ***, **, *
:
significan

t at 1%,
5% and
10% level
respectiv
ely ***,
**, * :
significan
t at 1%,
5% and
10% level
respectiv
ely
4.2.4.2 Returns

The information regarding the returns from tomato per acre basis is given in the table 4.2.4.
received Rs.197828.32/acre as gross returns whereas net returns come out to be
Rs.167719.18.

In case of open cultivation of vegetables an average farmer received Rs. 92345.40/acre as
gross return whereas net returns come out to be Rs.65669.19

If we study the comparative study of returns of tomato from net house and open cultivation
of tomato the information per acre basis indicated that in open cultivation of tomato the
production is 67.99 quintals less than the production from net house cultivation. The sale
price which the farmers get Rs. 223.77 more in case of net house cultivation than from open
cultivation of tomato. The gross returns from net house cultivation are Rs. 105482.92/acre
more than from open cultivation of tomato. Net returns from net house are Rs.
101749.99/acre more than open cultivation of tomato.

4.2.5 Economics of Capsicum Production.


table 4.2.5.

In case of net house cultivation of capsicum the variable cost was worked out to be

percent and 1.62 percent respectively.

In case of traditional house cultivation of capsicum the variable cost was worked out to be
Rs. 21492.57/acre, 82.96 percent was the variable cost and the remaining 17.04 percent was
the marketing cost. The structure of the total variable cost showed that the highest
proportion was spent on labour with 34.68 percent followed by fertilizer and FYM, seed,
plant protection and machinery and irrigation charges with 32.40 percent, 24.02 percent,
2.75percent, 4.48 percent, 1.67 percent respectively.

The comparative analysis of study of cost of production of capsicum in net house
cultivation and open cultivation the information per acre basis indicated that in open
cultivation of capsicum variable cost is Rs.464.68/acre more than that cultivating capsicum
in net house.

Table 4.2.5 Economics of net-house and Traditional cultivation of capsicum
Table 4.2.5 Economics of net-house and Traditional cultivation of capsicum Table 4.2.5
Economics of net-house and Traditional cultivation of capsicum Table 4.2.5 Economics of
net-house and Traditional cultivation of capsicum

(Rs./ acre)

A. Cost Structure

Seed 5443.61 5162.76 1.09ns


Labour 8621.45 7452.61 2.51**

Plant Protection 437.81 591.58 2.07**

Irrigation 334.62 359.31 1.02ns

Machinery 988.65 962.44 0.65ns

Variable cost 20618.47 21492.57

Marketing cost 4822.67 4413.25 2.37**


Production (Qtl) 78.24 58.27 2.26**

Sale Price (Rs./Qtl) 1207.59 1054.45 3.28***

Gross Returns 94481.84 61442.80 3.91***

Net Returns 69040.70 35536.98 3.52***

***, **, * : significant
at 1%, 5% and 10%
level respectively ***,
**, * : significant at
1%, 5% and 10% level
***, **, * : significant at 1%, 5% and 10% level respectively respectively
4.2.5.2 Returns

The information regarding the returns from capsicum per acre basis is given in the table
4.2.5. The results revealed that in case of net house cultivation of vegetable an average
farmer received Rs.94481.84/acre as gross returns whereas net returns come out to be
Rs.69040.70/acre.

In case of traditional cultivation of vegetables an average farmer received Rs. 61442.80/acre
as gross return whereas net returns come out to be Rs.35536.98/acre.

If we study the comparative study of returns of capsicum from net house and traditional
cultivation of capsicum the information per acre basis indicated that in open cultivation of
capsicum the production is 19.67 quintals less than the production from net house
cultivation. The sale price which the farmers get Rs. 153.14/acre more in case of net house
cultivation than from traditional cultivation of capsicum. The gross returns from net house
cultivation are Rs. 33039.04/acre more than from traditional cultivation of capsicum. Net
returns from net house are Rs. 33503.72/acre more than traditional cultivation of capsicum.

4.2.6 Comparative analysis of different vegetables grown under net house.

4.2.6.1 Cost structure

The information regarding the composition and the total expenditure on per acre basis of
different vegetables under net house is incorporated in Table 4.2.7. This would enable us to
know which of the vegetables need more investment and which variable is more important.
The result revealed that chilli is most expensive crop because of its highest expenditure of
Rs.36980/acre on per acre basis followed by tomato (Rs.30409.14), capsicum
(Rs.25441.14), potato (Rs.22276.55) and the peas was the least expensive vegetable with
expenditure of Rs.18962.05 on per acre basis.

So far as the important components of production costs are concerned, labour was most
important in case of chilli and tomato, seed in case of potato and capsicum. In case of
capsicum and chilli manure and fertilizer is the important component. Marketing cost was
more in case of tomato followed by potato, peas, chilli and capsicum.

Table 4.2.7 Economic comparisons of different vegetables grown under net house

(Rs./acre)

(Rs./acre)
(Rs./acre)
(Rs./acre)
(Rs./acre)
(Rs./acre)

Particulars Chilli Peas Potato Tomato capsicum

A. Cost Structure

Seed 3143.78 1356.61 9884.13 2363.52 5443.61

Fertilizers 3076.64 749.67 884.21 2149.58 4792.33

Labour 22564.21 9967.63 2183.84 12952.43 8621.45

Plant Protection 1963.85 164.22 464.56 484.96 437.81

Irrigation 452.11 171.47 471.22 459.77 334.62

Machinery 763.37 364.81 964.81 1411.37 988.65

Variable cost 31963.36 12774.41 14852.77 19821.63 20618.47

Marketing cost 5468.15 6187.64 7423.78 10587.51 4822.67

Total working
cost 37432.11 18962.05 22276.55 30109.14 25441.14

B. Returns
Structure

Production (Qtl) 133.84 45.59 76.54 157.33 78.24

Sale Price
(Rs./Qtl) 714.68 611.43 537.59 1257.41 1207.59

Gross Returns 95652.77 27875.09 41147.14 197828.32 94481.84

Net Returns 58220.66 8913.04 18870.59 167719.18 69040.70
4.2.6.2 Returns

The information regarding the various returns from the winter vegetable is incorporated in
table 4.2.7. The results indicated that gross returns were highest for tomato with
Rs.197828.32/acre. This was followed by chilli, potato, capsicum, peas with Rs.95652.77.
Rs.41147.14, Rs.94481.84 and Rs.27875.09 respectively.

The information regarding the net retruns was highest in case of tomato that is
Rs.167719.18 followed by chilli, potato, capsicum, and peas with net return of
Rs.58672.77, Rs.69040.70, Rs.18870.59 and Rs.8913.04 respectively.

Conclusions

The total cost comparison shows that in all the vegetables total cost in case net house is
comparatively less than that in open cultivation of vegetables and gross returns and net
returns were higher in case of net house than open cultivation of vegetables and if we
compare different vegetables, maximum net returns is in case of tomato followed by
capsicum, chilli, potato and least in case of peas

4.2.7 Input-output comparison of vegetables under net house and traditional
cultivation of vegetables.

4.2.7.1 Cost comparison of plant protection and chemical used in net house
vis-à-vis traditional cultivation of vegetables.

The table 4.2.7.1 shows the cost comparison of plant protection and chemical used in net
house and open cultivation of vegetables.

In the case of net house cultivation on per acre basis maximum use of plant protection and
chemical is in case of chilli of Rs.1963.85 that is 5.25 percent of the total cost on chilli
followed by tomato (Rs.484.96), potato (Rs.464.56), capsicum (Rs.437.81) and least in case
of peas of Rs.164.22 that is 0.87 percent of the total cost on peas.

In case of open cultivation of vegetables on per acre basis maximum use of plant protection
and chemical was also found in case of chilli of Rs.2557.13 that is 6.29 percent of the total
cost on chilli followed by tomato (Rs.771.37), potato (Rs.698.63), capsicum (Rs.591.58)
and least in case of peas is Rs.198.44 that is 1.16 percent of the total cost on peas.

Table 4.2.7.1 Cost Comparison of plant protection and chemical in net
house vis-à-vis traditional cultivation of vegetables (Rs/acre)
Table 4.2.7.1 Cost Comparison of plant protection and chemical in net
house vis-à-vis traditional cultivation of vegetables (Rs/acre) Table 4.2.7.1
Cost Comparison of plant protection and chemical in net house vis-à-vis
traditional cultivation of vegetables (Rs/acre) Table 4.2.7.1 Cost
Comparison of plant protection and chemical in net house vis-à-vis
traditional cultivation of vegetables (Rs/acre)
S
a
v
i
n
g

i
n

t
h
e

n
e
t

h
o
u
s
Net house Traditional Traditional cultivation e
Net house cultivation Saving in the net house

Vegetables Cost Percent Cost Percent Difference Percent

Chilli 1963.85 5.25 2557.13 6.29 -593.28 -30.21

Peas 164.22 0.87 198.44 1.16 -34.22 -20.83

potato 464.56 2.09 698.63 3.34 -234.07 -50.38

tomato 484.96 1.59 771.37 2.89 -286.41 -59.05

capsicum 437.81 1.72 591.58 2.28 -153.77 -35.12
If we study the cost comparative of plant protection and chemical use in vegetables in net
house and traditional cultivation of vegetables, in case of net house maximum saving is in
case of tomato that is 59.05 percent followed by potato (50.38 percent), peas (20.83
percent), and capsicum (35.12 percent) and in case of chilli the saving is 30.21 percent.

4.2.7.2 Cost comparison of labour used in net house vis-à-vis traditional
cultivation of vegetables.

This table shows the cost comparison of labour used in net house and open cultivation of
vegetables.

In this case of net house cultivation on per acre basis maximum use of labour is in case of
chilli of Rs.22564.21 that is 60.28 percent of the total cost followed by
tomato(Rs.12952.43), peas(Rs.9967.63), capsicum(Rs.8621.45) and least in case of potato
of (Rs.2183.84) that is 9.80 percent of the total cost on potato.

In case of traditional cultivation of vegetables on per acre basis maximum use of labour is
in case of chilli of Rs.24509.87 that is 60.29 percent of the total cost on chilli followed by
tomato (Rs.10177.15), peas (Rs.8288.43), capsicum (Rs.7452.61) and least in case of potato
is Rs.1621.67 that is 7.75 percent of the total cost on potato.

Table 4.2.7.2 Cost Comparison of labour in net house vis-à-vis traditional
cultivation

of vegetables

(Rs./acre)
Table 4.2.7.2 Cost Comparison of labour in net house vis-à-vis traditional
cultivation Table 4.2.7.2 Cost Comparison of labour in net house vis-à-vis
traditional cultivation Table 4.2.7.2 Cost Comparison of labour in net house
vis-à-vis traditional cultivation Table 4.2.7.2 Cost Comparison of labour in net
house vis-à-vis traditional cultivation Table 4.2.7.2 Cost Comparison of labour
in net house vis-à-vis traditional cultivation Table 4.2.7.2 Cost Comparison of
labour in net house vis-à-vis traditional cultivation Table 4.2.7.2 Cost Comparison
of labour in net house vis-à-vis traditional cultivation

of vegetables

(Rs./acre)
of vegetables

(Rs./acre)
of vegetables

(Rs./acre)
of vegetables

(Rs./acre)
of vegetables

(Rs./acre)
of vegetables

(Rs./acre)
of vegetables

(Rs./acre)
S
a
v
i
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g

i
n

t
h
e

n
e
t

h
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Net house cultivation s
Traditional Traditional cultivation e
Net house cultivation cultivation Saving in the net house

net house cultivation of vegetables in Punjab An Economic Analysis

net house cultivation of vegetables in Punjab An Economic Analysis

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