Economic Analysis of Acid Lime Production and Marketing in Nepal: A Benefit-Cost Perspective from Nawalpur East District
From Firenze University Press Journal: Journal of Agriculture and Environment for International Development (JAEID)
Sudip Ghimire, Faculty of Agriculture, Agriculture and Forestry University, Rampur, Chitwan, Nepal
Ujjwal Kumar Rauniyar, Faculty of Agriculture, Agriculture and Forestry University, Rampur, Chitwan, Nepal
Citrus aurantifolia Swingle, commonly known as acid lime, is a member of the Rutaceae family and is believed to have originated in the southern slopes of the Himalayas and northeastern regions of India (Asati et al., 2020). This tropical and subtropical fruit is of significant importance, particularly in Nepal, where it ranks as the third most prominent citrus crop after mandarins and sweet oranges (MOALD, 2020). Acid lime thrives in climates ranging from tropical to subtropical, with cultivation extending up to altitudes of 1200 meters above sea level (Thirugnanavel et al., 2007). Owing to its health benefits, acid lime is preferred for its appetizing qualities, stomachic properties, and antioxidant attributes (Thirugnanavel et al., 2007). Furthermore, lime peel oil and peel powder have extensive applications in soap and cosmetic industries (Debaje & Ingale, 2011).Citrus cultivation in Nepal is a high-value agricultural activity that is the highest priority of the Master Plan for Horticulture Development (Shrestha et al., 2012). Acidlime cultivation prevails from the fertile terai plains to the lofty highlands, and from the eastern to western regions of Nepal. Lime cultivation occupies 8,587 hectares, yielding a total production of 46,118 tons and a productivity rate of 8.47 mt ha-1(NCFD, 2020). Notably, in the eastern region of Nawalpur, 20 ha are dedicated to acid lime cultivation, with a productive area of 12 hectares, a production output of 310 mt, and a productivity rate of 25.83 mt ha-1(MOALD, 2020).However, despite the persistent efforts of the government and promising prospects for mid-hill citrus production, farmers in this sector face a multitude of challenges. These challenges include inadequate marketing infrastructure, limited access to market information, insufficient physical facilities, and a lack of marketing extension services (Chhetri & Ghimire, 2023a; Chhetri & Ghimire, 2023b). Additionally, price volatility and small-scale production concernsfurther compounded these difficulties (Ghimire et al., 2023). Disorganization among farmers exacerbates their predicament, rendering them vulnerable to exploitation by intermediaries seeking to maximize their profits (Sharma, 2006). In contrast to cereals, the marketing of horticultural commodities, such as fruits and vegetables, presents unique difficulties owing to their perishability, seasonality, bulkiness, and specialized handling requirements (Gandhi & Namboodiri, 2002; Ghimire & Chhetri, 2023a). Notably, Nepalese citrus has a limited market presence, spanning only 3–4 months. Research conducted by MDD (2001) underscores the challenges faced by high-hill farmers in acid lime production, which has led to declining interest among them. In light of these circumstances, it is imperative to assess theviability of acid lime farming by acquiring comprehensive information on production costs, marketing margins, gross margins, benefit-cost ratios, and overall profitability. This study primarily examines the economic aspects of acid lime production and marketing. The datasets derived from this study provide invaluable insights to a range of stakeholders, including farmers, entrepreneurs, investors, insurance agencies, and policymakers. This research has the potential to contribute valuable knowledge to boththe academic and practical aspects of acid lime cultivation in Nepal.In the subsequent sections, we delve deeper into the various facets of acid lime production and marketing. In Section 2, we provide detailed information about the methodology of the study, study site, and its relevance to acid lime cultivation. Section 3 explores the results and discussion of the study highlighting production processes and associated costs, shedding light on the economic aspects of acid lime farming and the marketing landscape, including price volatility and market dynamics. Finally, in Section 4, we summarize our findings, highlight their implications for the stakeholders mentioned earlier, and reveal their limitations and future research possibilities.
DOI: https://doi.org/10.36253/jaeid-14510
Read Full Text: https://www.jaeid.it/index.php/jaeid/article/view/14510
