Economic Analysis of Dragon Fruit Production in Dang Nepal

Abstract

This study assessed the production status, marketing system, and economic viability of 
dragon fruit cultivation in Dang district from November 2024 to January 2025, based on a 
survey of 44 purposively selected farmers in Lamahi and Tulsipur. The total production 
cost per hectare was NRs 3,593,364.90. Despite high initial investment, dragon fruit 
farming proved economically viable, with a benefit-cost ratio of 2.59, net present value of 
NRs 760,551.54, and an annual net profit of approximately NRs 1,200,000 per hectare. The 
payback period was 1.09 years, and the break-even point was 91.81 kg per Katha (3.1 
hectares). Direct marketing channels yielded the highest producer share (87.5%), while 
intermediary-based sales reduced it to 41.2%. Regression analysis identified land 
preparation, irrigation, and labor as major determinants of costs, whereas subsidies 
significantly reduced production costs. However, profitability was constrained by weak 
supply chains, unorganized markets, and post-harvest losses.