Economic Feasibility of Dragon Fruit Cultivation under Pole system in Punjab
Published by: Admin
Authors: Sakshi, Sunny Kumar and H K Mavi
Abstract
This study aimed to evaluate the economic viability of dragon fruit cultivation under the pole system in Punjab. For this study, primary data were gathered from 50 purposively selected dragon fruit growers, out of which 37 dragon fruit growers cultivating dragon fruit under the pole system were selected. These were subsequently classified into orchards up to four years (24 growers) and more than four years (13 growers). Financial feasibility was evaluated using annual amortization of cost, Net Present Value (NPV), Benefit-Cost Ratio (B:C), Internal Rate of Return (IRR) and payback period. The establishment cost of dragon fruit cultivation was estimated at Rs 5.09 lakh per acre, representing the majority of the initial establishment cost. The financial assessment showed that orchards up to four years recorded a negative net present value of Rs 5.24 lakh and a benefit-cost ratio of 0.43, indicating that the investment remained unfeasible during the establishment phase. However, orchards more than four years generated net present value of Rs 6.85 lakh, a benefit-cost ratio of 1.65, an internal rate of return of 33 per cent and a payback period of 3.9 years, indicating economic viability after the bearing stage. The projected analysis over the 20-year economic life of the orchard further confirmed its long-term profitability, with net present value of Rs 15.78 lakh per acre, benefit-cost ratio of 2.46 and an internal rate of return of 72 per cent. The study concluded that despite of high initial establishment cost, dragon fruit cultivation under the pole system is a financially viable and profitable long-term investment for farmers in Punjab.