AN ECONOMIC ANALYSIS OF TUNNEL TOMATO FARMING IN RUPAKOT MAJHUWAGADHI MUNICIPALITY, KHOTANG, NEPAL

In Nepal, most of the rural population depends on agriculture for employment, income, and food, making it an essential sector of the country's economy. This study aimed to examine the marketing and economics of tunnel farming for tomato production in the RupakotMajhuwagadhi municipality of the Khotang district of Nepal. Data was collected from 60 farmers across seven wards within the municipality through structured interviews. The findings revealed tunnel tomato farming is profitable in the study area, with an average Benefit-Cost Ratio (BCR) of 1.23. The average productivity was 5133.17 kg/ropani, with an average price of NRs. 61/kg. The total revenue generated from tomato sales was NRs. 313121.38/ropani per season, while the production cost was NRs. 254578.14/ropani per season. The most significant costs were associated with tunnel construction and labor, accounting for 46.54% and 34.37% of the total expenses, respectively. The minimum support price (MSP) was NRs. 62/kg at the farmer's level. Regression analysis shows that the cost of tunnel construction and farmer age explains 25.6% of revenue variation. Specifically, higher tunnel construction costs significantly increase revenue, while older age slightly decreases it. The study also identified three primary marketing channels, with direct sales to consumers, particularly restaurant and hotel owners, being the most common. Despite its profitability, farmers face several challenges, including pest and disease infestations, high initial investment costs, significant market price fluctuations, and a lack of motorable roads, which limits the potential for expansion and increased profitability. Thus, the result signifies tunnel tomato farming is profitable, although the initial investment is higher.