Investment Decision in Citrus Orchards of Punjab, Pakistan: A Socioeconomic and Financial Perspective

Asghar Ali, Abdullah Hammad, Muhammad Usman and M Ishaq Javed

Journal of Economic Impact, 2025, vol. 7, issue 1, 29-40

Abstract: The current study aimed to assess the production cost, factors affecting citrus yield and financial appraisal of long-term investment in citrus orchards. A well-structured and pre-tested questionnaire using a simple random sampling technique was used for primary data for 2022-23. The study was confined mainly to Layyah, Bhakkar, Sahiwal and Toba Tek Singh districts because of the newly emerging citrus-growing areas of Punjab. Findings indicated that citrus orchard output begins in the fourth year and continues unabated until 30 years. It hit peak in the year 20. The net present value was $ 1507 per acre, demonstrating that citrus farming produces higher returns. The benefit-cost ratio of 1:16 indicates citrus production is a profitable enterprise. Return on investment in the citrus orchard was 20 percent, and the payback period was observed as 4th year. Regression analysis revealed that orchard size, citrus growing experience, contact with extension agents and education level had positive and significant impacts on yield. The study concludes that investment in citrus orchards has provided favorable returns to farmers. To promote citrus production, the role of agricultural extension departments should be strengthened, and agricultural extension employees should have better training in the most recent scientific citrus discoveries and techniques. Awareness should be created among citrus growers through formal and informal education as literate farmers respond quickly to adopting innovation and interventions.

Keywords: Net present value; Internal rate of return; Benefit cost ratio; Payback period; Regression analysis; Citrus (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:adx:journl:v:7:y:2025:i:1:p:29-40

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