FINANCIAL AND ECONOMIC ANALYSIS OF TOMATO CULTIVATION UNDER MULTIPLE PRODUCTION SYSTEMS: A CASE STUDY OF DISTRICT BAHAWALPUR, PAKISTAN

Hydroponic farming offers an environmentally friendly alternative to conventional soil-based agriculture, while progressive farming employs a resource-intensive approach to enhance productivity. This research, carried out in 2020 in Pakistan’s Bahawalpur district, evaluated the financial performance of tomato cultivation across three farming systems: soil-based, hydroponic, and progressive. Data from 110 farmers were analyzed using cost analysis, MANOVA, ANOVA, and descriptive statistics. Key financial indicators, including return on sales (ROS), return on investment (ROI), operating ratio (OR), personnel cost ratio (PCR), and Asset turnover Ratio, were assessed. The findings indicate that although hydroponic farming involves costs nearly 25 times higher than soil-based farming, it generates profits approximately 10 times greater due to significantly higher yields. Progressive farming showed efficient resource utilization and profitability, while soil-based farming demonstrated greater financial flexibility. With a production cost of Rs.17.3 per kg for hydroponic tomatoes compared to Rs.17.5 for soil-based methods, hydroponics was highlighted as a more efficient option. The study identifies hydroponic farming as a sustainable and high-yield solution, especially in areas with limited land or low soil fertility. However, its widespread adoption requires overcoming barriers such as high initial investments, lack of technical knowledge, and limited awareness of this innovative farming method.