Year: 2025 | Month: September | Volume 70 | Issue 3
Economic Feasibility of Investment in Henna Cultivation in Pali District of Rajasthan
Shivraj Kumawat
Sheela Kharkwal
Vikas Chaudhary
Subhita Kumawat
Ramesh Chand Asiwal
DOI:10.46852/0424-2513.3.2025.15
Abstract:
his study explored the economic feasibility of henna cultivation in Pali district of Rajasthan. Information was gathered from 60 experienced henna farmers in the region using structured interviews in the year 2022-23. The costs (establishment and maintenance) and returns associated with henna cultivation over its economic lifespan of 24 years were assessed. Various discounting measures namely Net Present Worth (NPW), Benefit-Cost Ratio (BCR), and Payback Period (PBP) were employed to evaluate the feasibility of investing in henna cultivation in the study area. The initial establishment cost for henna was calculated to be ` 138308.63 per hectare in the first year and ` 52867.73 per hectare in the second year. The total maintenance costs from years 3 to 24 amounted to ` 1939006.47 per hectare. The overall cost of cultivation over the economic lifespan of henna was estimated at ` 2130182.83 per hectare, with gross returns of ` 3161426.00 per hectare. This resulted in a net return of ` 1031244.00 per hectare over the 24-year period. The financial feasibility analysis indicated that the investment in henna cultivation could be recouped within 8 years. The positive Net Present Worth (` 177065.87/ha) suggested that henna cultivation is economically worthwhile. Furthermore, the calculated Benefit-Cost Ratio of 1.24 at a discount rate of 10% underscored the profitability of henna cultivation.
Highlights
- The investment in henna cultivation can be recovered within 8 years, with positive Net Present Worth and a calculated Benefit-Cost Ratio indicating profitability.
- The financial analysis suggests that despite requiring significant initial investment, henna cultivation proves economically viable, with a positive Net Present Worth and a Benefit-Cost Ratio indicating profitability, thereby offering significant returns over the 24-year period.
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