INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIII, Issue X, October 2024
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Cost and Return Analysis of Tomato Cultivation in Three Different
Districts of Bangladesh
Tanjina Afrin
Assistant Professor, Sher-e-Bangla Agricultural University, Dhaka-1207, Bangladesh
DOI : https://doi.org/10.51583/IJLTEMAS.2024.131006
Received: 08 October 2024; Accepted: 24 October 2024; Published: 05 November 2024
Abstract: This paper attempts to analyze the costs, return and production problems of tomato in three districts namely Gazipur,
Rangpur and Cumilla in Bangladesh. It is necessary to enunciate that through purposive sampling technique, the data were collected
from 225 tomato cultivators of Cumilla and Rangpur districts. Human labour, fertiliser, bamboo sticks, thread, seeds and seedlings,
ploughing, irrigation, insecticides and pesticides, hormone, etc. are all necessary for the production of tomatoes. Transport expenses
must be taken into account as well. Together, the aforementioned elements were taken into account to estimate the cost of tomato
production. Every data set was subjected to statistical and economic analysis, with validated outcomes via a series of tables.
Numerous issues affect farmers, and this study sheds insight on this situation. The findings showed that the total cost was highest
in Gazipur (Tk.333,800/ha) than that of Rangpur ( Tk. 304,600/ha) and Cumilla ( Tk.282,670/ha). Gross returns from tomato in
Cumilla and Rangpur were Tk. 234,942/acre and Tk. 212,213/acre respectively. The net returns were found higher in Gazipur (Tk.
206,200/ha) than that of Rangpur (Tk. 135,400/ha) and Cumilla (Tk. 97,330/ha). Based on overall costs, the Gazipur, Rangpur and
Cumilla districts' benefit cost ratios for tomato production per hectare were determined to be 1.60,1.40 and 1.30, respectively. The
most notable limitations in were the high cost of inputs, the absence of storage facilities, price fluctuations, and damage from insects
and diseases.
Key words: Cost and return, Cost of production, Tomato cultivation, Benefit cost ratio (BCR), Bangladesh
I. Introduction
Tomato (Solanum lycopersicum) is a widely cultivated vegetable globally, renowned for its nutritional value and culinary
versatility. In Bangladesh, tomato production plays a significant role in the agricultural economy, contributing to both domestic
consumption and export markets. However, the profitability of tomato cultivation can vary across different regions due to factors
such as climate, soil conditions, market dynamics, and production practices. In recent years, there has been an increase in vegetable
production and yield per acre. The overall area of vegetable production was 8,81 thousand acres with a per acre output of 3,283 kg
in the year 2008-2009, whereas the total area of vegetable production was 3,378 kg in the year 2010-2011, according to the
Yearbook of Agricultural Statistics of Bangladesh, 2011. Tomato is an important vegetable which is consumed all the year round.
Tomatoes are classified into two categories according to its production season. These are rabi tomato and summer tomato. Tomatoes
are produced all the year round but its peak season during December to March. In the year 2011-2012, total production of tomato
is 255 thousand metric tons (BBS, 2012).
Bangladesh has conducted very little tomato-related research. In the Jamalpur region, Zaman et al. (2006) investigated the summer
tomato's potential for production. They conducted a profitability study using net return and BCR. They discovered that the research
area's BCR was 3.2 and the net return, or profit, was Tk. 690,464 for one hectare. The acceptance and financial viability of an
enhanced tomato variety in Bangladesh's Chittagong region were examined by Mohiuddin et al. in 2007. They employ the Cobb-
Douglas production model and the tabular technique.
They discovered that the farmers of enhanced tomato adopters were dealing with a number of issues, including a lack of high-
quality seed, unfavorable weather, and high-quality insecticide and fertilizer for tomato growing. One of the main issues facing
tomato growers was said to be the high cost of inputs. Karim et al. (2009) studied profitability of summer BARI Hybrid tomato
cultivation in Jessore district of Bangladesh. They used net return and BCR for profitability analysis. They found that yield of BARI
hybrid tomato was 32.7 t/ha. BCR was found 4.19 on full cost basis and 5.09 on cash cost basis. They found that high price of input,
insect and disease attack were reportedly the major problems for tomato production.
Haque et al. (2012) investigated the BARI winter tomato's uptake and financial viability in several Bangladeshi districts. It was
discovered that the Raton and BARI hybrid tomato-5 variety yielded more profits than its rival crops, mustard, lentil, and potato.
They look into various issues that farmers face. The main obstacles to BARI tomato growing were insect and disease infestation,
lack of technical expertise, lack of storage facilities, and the unavailability of BARI tomato variety seed at the appropriate period.
A study by Shiblee et al. (2012) examined the financial viability of a few crops that BARI prescribed. They discovered that their
research area's BCR was greater than two and that tomato growing was profitable. In certain parts of Bangladesh, Khatun et al.
(2012) conducted research on the assessment of tomato post-harvest loss. The focus of the current investigation is profitability of
tomato production while also demonstrating the connection between socioeconomic traits and issues tomato growers face. This
study thoroughly examines the main issues with tomatoes. The present study has emphasized not only the costs and returns of
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
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ISSN 2278-2540 | DOI: 10.51583/IJLTEMAS | Volume XIII, Issue X, October 2024
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tomato production but also established the relationship between socioeconomic characteristics and problems faced by the tomato
farmers.
The specific objectives of the paper are as follows:1. To determine the socio-economic characteristics of tomato growers. 2. To
determine the efficient level of input use for tomato cultivation. 3. To assess the cost and return of tomato cultivation. 4. To identify
the major constraints for profitable tomato cultivation.
II. Methodology
Gazipur, Rangpur and Cumilla district were purposively selected for the study because they are renowned for tomato cultivation in
Bangladesh.. A total number of 225 tomato producers were selected randomly for primary data collection. A semi-structured pre-
tested interview schedule was used for collecting data and information from the tomato farmers during November to February in
2021.
A random sampling technique was applied for selecting sample. Through random sampling 225 farmers were selected for the study.
Among them, 75 farmers were from Gazipur, 75 farmers were from Rangpur and 75 farmers were from Cumilla. The study is
involved in collection of data both from the primary and secondary sources. Primary data were collected by the personal interview
with the respondents. The secondary sources include govt. publications, annual reports on tomato cultivation, seminar papers,
journals, published and unpublished theses, and topic related various books, BBS, web site etc. Tabular and simple statistical
methods were used to analyze the collected data. The collected data were analyzed as per objective of the study.
Analytical Technique
The revenues and costs of tomato cultivation were calculated for three to four months. We used total variable cost, total fixed cost,
total cost, total revenues, gross farm income to calculate profitability. Total variable cost is the sum of labour cost, organic and
chemical fertilizer cost, seed cost, bamboo cost, tractor/power tiller cost, pesticides cost, irrigation cost. Gross value of production
is outcome of tomato yield multiplied by tomato price per hectare. Net farm income is calculated from total revenue deducted from
total cost. BCR is the result of gross value of production divided by total cost of tomato production.
Total variable cost= Labor cost + Ploughing cost + Chemical fertilizer cost + Manure Cost +Seed and seedling cost + Irrigation
cost + Pesticide and insecticide cost+ Bamboo Stick and thread cost+ Hormone cost+ Transportation cost.
Total cost = Total variable cost + Total fixed cost
Gross Margin= Total return - Total variable cost
Net Return = Total return- Total cost
Benefit cost ratio (Total cost basis) =Gross return/Total cost
III. Results and Discussion
Socioeconomic profile of the respondent farmers
Table 1 shows the socio-economic feature of the sample farmers. Farmer’s average age is 45years and farmer’s average year of
schooling is 6 in all areas. Farmer’s average total family member is 4 in the study area. Farmer’s average homestead area is 0.1
hectares in Gazipur which is highest among three districts. Farmer’s average own cultivated land is 0.28 hectares in Gazipur wh ich
is highest among three districts. Farmer’s average vegetable cultivation area is 0.2 hectares in Cumilla which is highest whi le 0.06
hectares in Rangpur which is lowest among three districts. On an average farmer gets 2 agricultural training. On an average farmer’s
have 12 years of farming experience.
Table 1: Socio –economic features of sample farmers
Parameter Gazipur (n=75) Rangpur (n=75) Cumilla (n=75) All (n=225)
1.Family member statistics
Family age ( years ) 40 45 50 45
Family education (years of schooling) 6 6 6 6
Total family members(no) 4 4 4 4
2.Use of land pattern (hectres)
Pond area 0.001 0.008 0.02 0.009
Cultivated land 0.28 0.27 0.25 0.26
Homestead area 0.1 0.04 0.05 0.06
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Vegetable cultivation area 0.08 0.06 0.2 0.11
3.Others
No. of agricultural training (lifetime ) 2 2 2 2
Years of farming experience 10 15 11 12
Source: Household survey 2022
Input use pattern of tomato cultivation in the study areas
Table 2 shows the input use pattern of tomato cultivation in the study areas. On an average farmer use 4 kg seed per hectare in the
study areas. In Cumilla, farmers use 230 man days’ family labor per hectare which is highest and farmers use 146 man days family
labor in Gazipur which is lowest among three districts. On an average farmers use 198 man days hired labor per hectare in their
field. Farmer’s use 1100 kg urea per hectare in Gazipur which is highest and 780 kg in Cumilla which is lowest among three districts
.Farmer’s use 230 kg Muriate of Potash per hectare in Rangpur which is highest and 198 kg in Cumilla which is lowest among three
districts. Farmer’s use 1,700 kg manure per hectare in Gazipur which is highest and 1080 kg in Cumilla which is lowest among
three districts. On an average farmers use 63 liters of pesticides in the study areas.
Table 2: Per hectare level of input use pattern for tomato cultivation
Inputs Gazipur Rangpur Cumilla All
1.Human labor (man-days)
Family 146 203 230 193
Hired 153 210 230 198
2.Seed (kg/ha ) 4 4 4 4
3.Power tiller (no.) 63 65 67 65
4.Fertilizers (kg)
Urea 1100 1050 780 976
Triple super phosphate(TSP) 750 780 740 756
Muriate of Potash (MoP) 226 230 198 218
Diammonium Phosphate (DAP) 105 57 50 71
Zinc sulfate 75 65 48 63
Gypsum 7 6 2 5
5.Manure(kg) 1700 1650 1080 1476
6.Pesticide(litre) 65 78 47 63
Source: Household survey 2022
Costs of the Tomato Cultivation in the Study Area
Table 3 shows the costs of tomato cultivation in the study area. Ploughing cost is Tk. 15,100 in Gazipur, while Tk. 12,600 and Tk.
10,500 in Rangpur and Cumilla respectively. On an average, seed cost is Tk. 5,100 in the study areas. Among the three districts,
fertilizer costs is highest in Gazipur (Tk. 63,500) while Tk. 59,600 and Tk. 49,000 in Rangpur and Cumilla respectively. Total
variable costs are Tk. 237,900 in Gazipur which is highest among three districts, while Tk. 213,100 and Tk. 196,100 in Rangpur
and Cumilla respectively. On an average interest on operating capital was Tk. 4,790 in the study areas. Total fixed cost is Tk. 95,900
in Gazipur which is highest among three districts, while Tk. 91,500 and Tk. 86,570 in Rangpur and Cumilla respectively. Total cost
is Tk. 333,800 in Gazipur which is highest among three districts, while Tk. 304,600 and Tk. 282,670 in Rangpur and Cumilla
respectively.
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Table 3. Per hectare costs of different inputs used in tomato production (Tk.) in study areas
Parameters Gazipur Rangpur Cumilla All
Variable Costs (Tk/ha)
Hired labour 73000 65000 68000 68666
Seeds 4600 5200 5500 5100
Manure 3300 3500 4000 3600
Fertilizer( Organic + Chemical) 63500 59600 49000 57366
Ploughing 15100 12600 10500 12733
Irrigation 13500 12800 11900 12733
Bamboo stick and thread 55400 45800 40500 47233
Pesticides 9500 8600 6700 8266
Total variable cost 237900 213100 196100 215697
Family labour 65000 59500 58350 60950
Interest on operating capital (four months ) 5400 4400 4570 4790
Land rent (( four months) 25500 27600 23650 25583
Total fixed costs 95900 91500 86570 91323
Total cost 333800 304600 282670 307020
Source: Household survey 2022
Profitability of Tomato Cultivation
Table 4 indicates the average gross return, gross margin and net return of tomato for Gazipur, Cumilla and Rangpur districts. On
an average yield for Gazipur was 45ton/ha, for Rangpur was 40ton/ha and for Cumilla was 38 ton/ha. Gross return per hectare were
Tk. 540,000 ,Tk. 440,000 and 380,000 in Gazipur, Rangpur and Cumilla respectively. Gross margin per hectare were Tk.302,000,
Tk. 226,900 and Tk. 164,303 for Gazipur,Rangpur and Cumilla respectively. Among the three districts, net return per hectare was
high in Gazipur (Tk. 206,200) than that the others. BCR based on the total cost was 1.60,1.40 and 1.30 for Gazipur, Rangpur and
Cumilla respectively. BCR was greater than one in the study area indicating that growing of tomato is a profitable. The findings of
the study have revealed that overall farmers of the study area are getting good profits from tomato production.
Table 4. Per hectare profitability of producing tomato in study areas
Parameters Gazipur Rangpur Cumilla
Yield (Ton/ha) 45 40 38
Price (tk/kg) 12 11 10
Gross return (Tk/hectre) 540000 440000 380000
Gross costs (Tk.) 333800 304600 282670
Gross margin (Tk/ha) 302100 226900 164303
Net return (tk/ha) 206200 135400 97330
Benefit cost ratio 1.6 1.4 1.3
Source: Field survey 2022
Major Constraints for Profitable Tomato Cultivation
Without a question, growing tomatoes has the potential to be financially successful, but there are many obstacles in the way of their
desired production. Table 5 showed that the most evident barriers to tomato production are high input costs, a lack of storage
INTERNATIONAL JOURNAL OF LATEST TECHNOLOGY IN ENGINEERING,
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facilities, price volatility, and damage from insects and diseases. Furthermore, the research area's tomato growers claim that their
biggest challenges include delayed seed delivery, insufficient funding, and a lack of government assistance.
Table 5. Problems faced by the tomato farmers.
Problems Gazipur Rangpur Cumilla
No of respondents
(n=75)
Percent
(%)
No of respondents
(n=75
Percent (%) No of respondents
(n=75)
Percent (%)
High price of
input
50 66.66 55 73.3 55 73.33
Lack of storage
facilities
45 60 60 80 30 40
Insect and
disease damage
55 73.33 57 76 60 80
Price
fluctuation
48 64 45 60 55 73.33
Lack of capital 45 60 50 66.66 48 64
Lack of
training
50 66.66 60 80 50 66.66
Source: Field survey 2022
IV. Conclusions and Policy Recommendations
This paper has carefully evaluated the profitability and future prospects of tomato production in addition to the challenges faced by
farmers. It is evident that the study area's tomato production is quite profitable. However, a number of issues, including high input
costs, a lack of storage facilities, price fluctuations, damage from insects and diseases, a lack of timely seed supply, a lack of money,
and a lack of government support, are listed as the main roadblocks to tomato cultivation in the study area. Therefore, in order to
boost tomato growers' income and job prospects, it is advised that storage facilities, efficient extension services, effective policies,
and input availability be guaranteed. Furthermore, the government's oversight and assistance in advancing the growth of vegetable
products must be expanded. To top it all off, our tomato producers' financial situation would have much improved and tomato yield
and production would have skyrocketed had contemporary inputs and production technology been accessible sooner. Ideally, if the
challenges and issues that face our farmers in general and tomato farmers in particular are resolved, a lot more people will be
inclined to come and grow tomatoes, which will not only provide us with the necessary calories and vitamins but also contribute a
lot to our national economy.
References
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Government of the People’s Republic of Bangladesh, Dhaka.
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