ECONOMIC VIABILITY OF GREENHOUSE VEGETABLE FARMS IN KERALA

Greenhouse vegetable farming has emerged as a promising solution for enhancing agricultural productivity and addressing climatic uncertainties, particularly in ecologically sensitive states like Kerala. This study evaluates the annual economic performance and viability of greenhouse vegetable farms in Kerala, using detailed cost and return data from 165 units established between 2009–10 and 2019–20. Employing standard farm management cost accounting methods (A1, B1, C2, C3) and applying non-parametric statistical tests (Kruskal–Wallis H and Pearson Chi square test), the analysis explores the profitability dynamics across five greenhouse size categories. The findings reveal that although economies of scale significantly reduce unit costs, a majority of greenhouses operate at a loss, even under subsidised conditions. Profitability is highest among large greenhouses (501–1000 sq. m), while very small units (≤100 sq. m) face severe economic inefficiencies. The results underline that despite policy support, greenhouse cultivation in Kerala faces major challenges in achieving financial viability, particularly for smallholder farmers. This highlights the need for integrated interventions combining financial aid, capacity building, and collective farming models to improve long-term sustainability. Keywords: Greenhouse Farming, Economic Viability, Protected Cultivation, Economies Of Scale, Subsidy Impact