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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
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    References listed on IDEAS

    as
    1. Subrahmanyam, K. V. & Mohandoss, V., 1982. "Economic Evaluation of Coorg Mandarin (Orange) in Karnataka," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 37(01), January.
    2. Gangwar, L.S. & Singh, Shyam, 1998. "Economic Evaluation of Nagpur Mandarin Cultivation in Vidarbha Region of Maharashtra," Indian Journal of Agricultural Economics, Indian Society of Agricultural Economics, vol. 53(4), December.
    Full references (including those not matched with items on IDEAS)

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