Year: 2025 | Month: September | Volume 70 | Issue 3
Is Kinnow Mandarin Still Economically Viable in 2024? A Case Study of Sirsa District of Haryana
Vipin Arya
Gino A Sangma
Anuradha Seal
Alisha
Rahul Dhankar
DOI:10.46852/0424-2513.3.2025.3
Abstract:
The economic viability of Kinnow Mandarin production remains a significant concern for farmers and policymakers in North-Western India. This study evaluates the sustainability of Kinnow production in 2024, focusing on Sirsa district, Haryana. Previous research has emphasized the profitability of Kinnow cultivation, with high returns on investment and efficient marketing channels ensuring up to 81% of the consumer price for farmers.
The establishment cost of Kinnow orchards in Haryana is estimated at ` 127,979 per hectare, with an annual net return of ` 272,845, yielding an internal rate of return (IRR) of 26.24%. As every year, there is change in cost of production and returns in the value chain of kinnow because of fluctuating prices of input as well as price of the commodity, it is important to find current cost and returns associated in the business. This study aims to provide a comprehensive financial analysis and highlight key challenges and opportunities to sustain Kinnow’s economic viability.
Highlights
- Kinnow cultivation remains economically viable, with a Net Present Value (NPV) of ` 657,911.78, an Internal Rate of Return (IRR) of 20.37%, and a Benefit-Cost (B:C) ratio of 4.14, indicating strong long-term profitability despite high initial costs.
- Break-even occurs by the 6th year, with positive net returns of ` 59,926, and profits rising sharply to ` 224,264 in the 7th year, demonstrating sustainable financial gains post-establishment phase.
- Initial establishment cost per hectare is ` 179,714.90, with major expenses being pond construction (29.11%), permanent fencing (23.67%), and drip irrigation (13.74%), reflecting the capital-intensive nature of orchard development.
- Operational costs over seven years total ` 294,164, with manure & fertilizers, plant protection, and irrigation forming the bulk of recurring annual costs, highlighting the importance of efficient input management.
- Key challenges identified include post-harvest losses, climate-induced risks, high initial investment, and market inefficiencies, suggesting a need for improved value chain interventions, FPO involvement, and policy support.
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