Asian Journal of Agricultural Extension, Economics & Sociology

Background: Kerala, a consumer state with insufficient vegetable production, relies heavily on imports from other states and has recently promoted greenhouse cultivation to boost local high-tech vegetable production, though its overall impact remains limited.

Aim: The study aims to analyse the economic viability and decadal performance of greenhouse vegetable farming in Kerala using the Benefit–Cost Ratio (BCR), with a comparative assessment of various sizes of greenhouses under subsidised and non-subsidised conditions.

Study Design: An analytical and empirical research design was adopted, focusing on cost–return analysis and comparative evaluation of greenhouse units across different size categories.

Place and Duration: The study was conducted across all fourteen districts of Kerala, covering a period of eleven years from 2009–10 to 2020–21.

Methodology: The study utilised farm-level data collected from 165 greenhouse units (out of the population of 837) classified into very small, small, medium, large, and very large categories. A detailed cost and return (net revenue) analysis was carried out from the inception of each unit up to 2020–21. The primary analytical tool used was the Benefit–Cost Ratio (BCR), which was calculated both with and without subsidy to assess financial viability and intrinsic economic efficiency. Descriptive and comparative analyses were employed to evaluate performance across different size groups.

Results: The findings reveal that without subsidy, a majority (78.8%) of greenhouse units were economically unviable (BCR < 1), with an overall average BCR of 0.715. With subsidy, performance improved significantly, reducing unviable units to 44.8% and increasing the average BCR to 1.10. Medium and large-sized greenhouses showed relatively better performance, while very small and very large units remained less efficient. However, even with subsidies, a considerable proportion of units continued to exhibit low profitability.

Conclusion: The study concludes that greenhouse vegetable farming in Kerala is largely subsidy-driven rather than intrinsically profitable. While subsidies enhance adoption and improve short-term returns, long-term sustainability requires improvements in cost efficiency, productivity, and management practices to reduce dependence on government support.