IDEAS home Printed from https://ideas.repec.org/a/zib/zbfabm/v4y2023i2p100-103.html
   My bibliography  Save this article

Financial Feasibility Analysis Of Sweet Orange Production In Sindhuli, Nepal

Author

Listed:
  • Nishma Dhakal

    (Institute of Agriculture and Animal Science, Tribhuvan University, Nepal)

  • Binayak Kunwar

    (Department of Agricultural Economics, Purdue University, USA)

  • Karishma Subedi

    (Agriculture and Forestry University, Nepal)

  • Debraj Adhikari

    (Ministry of Agriculture and Livestock Development, Nepal)

Abstract

Although the sweet orange business has been one of the prime sources of income for farmers of the Sindhuli district of Nepal, they are still unaware of the feasibility of this business. Therefore, research was conducted with the objective of analyzing the feasibility of sweet oranges in Sindhuli. Data sources for the study included both primary and secondary sources. To acquire primary data for the study, focus group discussions and household surveys via questionnaires were done, while secondary data were extracted from various journals, research articles, annual reports, and publications of governmental institutions. A total of 95 respondents were selected using simple random sampling from the Golanjor rural municipality. The Benefit Cost Ratio (BCR), Net Present Value (NPV), Internal Rate of Returns (IRR), and Pay-Back Period (PBP) were used to assess the feasibility. From the analysis, the BCR, NPV, IRR, and PBP were calculated to be 2.09, NPR 23,863,688, 32.44%, and 6 years, 10 months, and 18 days, respectively. A BCR of more than one, a positive NPV, an IRR greater than the bank rate, and a payback period shorter than the 20-year project duration indicated that sweet orange production in Sindhuli is financially feasible and lucrative. Likewise, the result of the sensitivity analysis suggested that the sweet orange production business can also withstand the undesired conditions, such as a decrease and increase in production cost and price, respectively, by 10% and delayed production by 1 year.

Suggested Citation

  • Nishma Dhakal & Binayak Kunwar & Karishma Subedi & Debraj Adhikari, 2023. "Financial Feasibility Analysis Of Sweet Orange Production In Sindhuli, Nepal," Food & Agribusiness Management (FABM), Zibeline International Publishing, vol. 4(2), pages 100-103, November.
    • Handle: RePEc:zib:zbfabm:v:4:y:2023:i:2:p:100-103
    DOI: 10.26480/fabm.02.2023.100.103
    as

    Download full text from publisher

    File URL: https://fabm.org.my/archive/2fabm2023/2fabm2023-100-103.pdf
    Download Restriction: no
    File URL: https://libkey.io/10.26480/fabm.02.2023.100.103?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zib:zbfabm:v:4:y:2023:i:2:p:100-103. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Zibeline International Publishing The email address of this maintainer does not seem to be valid anymore. Please ask Zibeline International Publishing to update the entry or send us the correct address (email available below). General contact details of provider: https://fabm.org.my/ .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.