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Benefits of Lemon Cultivation a Micro Level Study in Bangladesh

M. A. Matin
Agricultural Economics Division, Bangladesh Agricullural Research Institute, Joydebpur, Gazipur, Bangladesh

A. S. M. Anwarul Huq
Agricultural Economics Division, Bangladesh Agricullural Research Institute, Joydebpur, Gazipur, Bangladesh

M. S. Hussain
Agricultural Economics Division, Bangladesh Agricullural Research Institute, Joydebpur, Gazipur, Bangladesh

M. R. Karim
Agricultural Economics Division, Bangladesh Agricullural Research Institute, Joydebpur, Gazipur, Bangladesh

R. Islam
Horticulture Research Centre, Bangladesh Agricultural Research Institute, Joydebpur, Gazipur, Bangladesh

Abstract/ Executive Summary:

The study was conducted in Sreemongal thana in Moulavebazar district. Two unions where lemon is grown extensively were selected purposively. A complete list of all lemon growers in the selected union was compiled and stratified according to the age of the garden. Normally, a lemon tree gives fruit for 20 long years and it is presumed that the highest yield takes place on the sixth year. The objective of the study was to identify the technology currently adopted for cultivating lemon, ascertain the cost and return from lemon cultivation and identify the constraints. Cultivation cost of lemon is very high. Without institutional credit support, it is difficult for the poor farmers to expand areas for lemon cultivation. It is, therefore, necessary to provide credit with easy terms and conditions. Fertilizers and pesticides should be provided at a reasonable price. Road communication and transportation facilities should be' developed and also ensure right price of lemon during the peak harvesting period.

Keywords: Lomon, Micro credit, Reasonable price, Cost and return

Location: Sreemongal thana in Moulavebazar district, Bangladesh

Start Date:

End Date:

Program Area: Socio-economic and Policy

Commodity: Lemon

Objectives:

To identify the technology currently adopted for cultivating lemon;
To ascertain the cost and return from lemon cultivation; and
To identify the constraints, if any, which restrict higher yield of lemon.

Methodology:

The study was conducted in Sreemongal thana in Moulavebazar district. Two unions where lemon is grown extensively were selected purposively. A complete list of all lemon growers in the selected union was compiled and stratified according to the age of the garden. Normally, a lemon tree gives fruit for 20 long years and it is presumed that the highest yield takes place on the sixth year. Between 7th - 15th year and also during 16th - 20 year the cost and return are more or less equal. A total of 72 samples were selected randomly out of which 30 samples were taken from 1-6 year old gardens, 27 from 7-15 year old gardens and the rest (15) from 6-20 year old gardens. The farmers were interviewed with the help of a predesigned interview schedule. Information about current method of cultivation, the inputs applied, cost as well as return for different years etc. were collected. The collected data were edited, summarized and analyzed through tabular method to arrive at the various objectives of the study. And in order to determine the benefit cost ratio (BCR), net present worth (NPW) and internal rate of return (IRR), the following formula was used: (1) Benefit Cost Ratio (BCR) = (Present worth of gross benefit)/Present worth of gross cost, (2) Net Present Worth (NPW): (Present worth of gross benefits minus)/Present worth of gross costs, etc. It is pertinent to note that expenses were made in a year while the benefits were obtained in the following year for which the cost and return were treated for the former and not for latter.

Source of Information: Economic Affairs, Vol. 44, Qr. 2, June 1999

Article Link (Online Journal):

Funding Source:

1.

Budget:

Total Budget (Tk.) :

Achievement/Findings:

In the light of the above, the following conclusions can be drawn and certain recommendations can be put forward: The benefit cost ratio, net present worth and internal rate of return indicate that lemon cultivation is highly profitable for the inhabitants of the study area. Sensitivity analysis also indicates that the owners of lemon garden can earn profit under changing situation. To overcome the problem of irrigation, it is essential to create irrigation facility in the locality and develop appropriate technique to preserve soil moisture, which will minimize irrigation water requirement. Cultivation cost of lemon is very high. Without institutional credit support, it is difficult for the poor farmers to expand areas for lemon cultivation. It is, therefore, necessary to provide credit with easy terms and conditions. Fertilizers and pesticides should be provided at a reasonable price. Road communication and transportation facilities should be developed and also ensure right price of lemon during the peak harvesting period.

Knowledge Management: Journal