Does Assam Lemon Cultivation Offer Economic Profitability? Evidence from Nalbari District

Abstract

Background: Assam lemon is one of the most important citrus fruit crops grown in Northeast India that holds immense commercial importance. However, there is a dearth of empirical studies related to its economic feasibility among the various sizes of farms in Assam. Thus, the present research evaluated the economic feasibility and profitability of cultivation of Assam lemon in Nalbari district of Assam to promote profitable fruit farming in the state. Methods: Primary data were collected from 100 farmers using a multistage purposive and random sampling strategy, including 40 marginal, 30 small, 20 semi-medium and 10 medium farmers. Establishment and annual maintenance costs were analysed along with output, gross return and net return per hectare. Economic viability was assessed using key investment appraisal indicators, including the benefit-cost (BC) ratio, net present value (NPV) and internal rate of return (IRR), with establishment costs amortized over 15 years at an annual rate of 6%. Result: Analysis revealed that both establishment and maintenance costs increased with farm size, reflecting larger farms’ greater investment in improved management practices. Average annual maintenance cost across all farms was Rs. 60,075.27/ha and net return was Rs. 1,63,183.77/ha. Economic feasibility indicators demonstrated high profitability, with a BC ratio of 3.8, NPV of Rs. 12,01,425 and IRR of 66.95%. These findings indicate that Assam lemon cultivation is economically viable and profitable. The study recommends government support through subsidies, extension services and value-added product development to further enhance productivity, income and sustainability.