An Assessment of Financial Viability of Big Onion Seed Production in Matale District

Unavailability of good quality seeds of recommended big onion varieties is a major constraint for increasing the productivity of big onion cultivation in Sri Lanka. The purpose of this study was to investigate the financial feasibility of big onion production using domestically produced true seeds at farmer level. The specific objectives of the study were to compare big onion yields obtained using local and imported true seeds, compare the financial viability of big onion production using local and imported true seeds and to assess the financial viability of local true seed production in Matale district. A production function was estimated to achieve the first objective and cost benefit analysis was conducted to achieve the second and third objectives. Primary data were collected from 144 big onion farmers and 74 big onion seed farmers in Matale district. The production function estimates showed that the yield with local true seeds was 1.32 times higher than that obtained from imported true seeds. The profitability of big onion cultivation with local true seeds and imported true seeds were Rs. 27.69 and 12.95 per kg, respectively, in Yala 2009. The profitability of local true seed production was Rs. 4,497 per kg in Maha 2008/09. These results indicate that true seed production is financially feasible at farmer level and commercial big onion production using local true seed is more financially attractive when compared to that of imported true seeds.

Key words: Big onion seeds; Cost benefit analysis; Financial viability.

DOI: 10.4038/tar.v22i1.2675

Tropical Agricultural Research Vol. 22 (1): 107-112 (2010)