Efficiency analysis of tomato crop in District Sheikhupura, Punjab Pakistan

Agriculture sector still plays an important role in the economies of developing countries. Pakistan is not an exception. Vegetables are an important source of food security and livelihood for the masses. This study aimed to improve the tomato cultivation. The objectives were to: estimate cost of production of tomato and benefit cost ratio; estimate domestic terms of trade; identify issues faced by the farmers; and suggest policy implications. Both primary and secondary data were collected. Primary data were collected from 100 farmers of District Sheikhupura based on the share of the district in tomato production. Data were analyzed using economic and statistical techniques such as profitability, BCR, comparison of means and frequency distribution. The efficiency analysis was conducted by using Data Envelopment Analysis through DEAP software. Economic analysis showed that, large farmers were getting more benefits with highest BCR i.e. 1.06 followed by small farmers 1.04 and medium farmers 1.01. There was very little difference among all farmers according to economic efficiency. It was found that the profitability of tomato production has gone down over the years. Farmers in the study area produced higher yields than the national average, but significantly less than the global average. The most important issue faced by the farmers was input-output prices along with timely availability of quality seed. The efficiency analysis showed that the technical and economic efficiency of small farmers were high. Technically small farmers were 98 percent efficient. It means that 2 percent outputs can be increased by using same inputs. The medium and large farmers were 94 and 91 percent efficient respectively. Results of Tobit model showed that Tomato growers' efficiency is improved by factors such as age, education, agricultural experience, and tube-well ownership. This study suggests rectify the imbalances in the input and output markets especially in the seed market.