Dragon Fruit Cultivation, Profitability, and Production Efficiency in Southern Terai, Nepal

In Nepal, dragon fruit farming is promising but faces limited adoption due to its high initial cost during the establishment years. However, its market demand and export potential could be an economic opportunity for farmers. The categorization of dragon fruit farmers was done as ۳۹ small-scale and ۲۵ large-scale farmers on the basis of an average farm size of ۲۰ kattha (۶۷۷۲.۶ m۲). A total of ۶۴ dragon fruit farmers were selected randomly from different clusters through a multi-stage sampling technique. The results revealed that the average cost of production of dragon fruit per kattha during the establishment year was NRs. ۲۵۹۰۹۸.۵۸ (۱۹۴۱.۸۹ USD), and the gross benefit was NRs. ۵۴۰۹۷۲.۰۰ (۴۰۵۴.۹۸ USD) in a large-scale farm and ۴۰۲۹۲۸.۳۳ (۳۰۱۹.۸۷ USD) in a small-scale farm. Also, an average BC ratio of ۱.۸۷ indicates a profitable farming business. Provision of extension services and involvement in cooperatives were found to be significant among socioeconomic characteristics for the farm category. Land preparation costs, manure, labor, fertilizers, and plant protection costs were found to be significant for the total cost incurred in dragon fruit cultivation. In the production function analysis, the cost of pillars and plant protection costs were positively significant, while the cost of irrigation was negatively significant to gross returns. The findings will encourage the adoption of dragon fruit farming by providing farmers with essential information on production costs and profitability. Market stability, training and extension, and subsidies should be given top priority by the relevant authorities.

Keywords:

Benefit-cost ratio , Gross return , Hylocereus , Kattha , Pillar cost , Production Function