Financial feasibility and profitability analysis of dragon fruit cultivation

Abstract

Dragon fruit (Hylocereus sp.), a tropical cactus fruit known for its high nutritional value and economic potential, has gained prominence in India since its introduction in the late 1990s. With Karnataka being a major contributor to its production, assessing the financial feasibility and yield potential of dragon fruit cultivation is crucial for optimizing its commercial success. This study evaluated the growth trends, yield performance and economic viability of dragon fruit farming based on data collected from experimental and farmer-managed fields in Karnataka. Results showed that scientifically managed experimental fields consistently outperformed traditional farming methods, yielding an average of 1,603 kg/acre annually, compared to 1,295 kg/acre in farmer’s fields. The experimental field also achieved higher revenue (₹2,24,479 annually) and better financial indicators, including a Net Present Value (₹7,31,351), Benefit-Cost Ratio (3.98) and Internal Rate of Return (102.91%), demonstrating greater profitability. Financial feasibility analysis further confirms that dragon fruit farming is a viable and lucrative agricultural venture, with a relatively short payback period of 5.2 years in the experimental setup. With growing demand and strong market potential, adopting scientific cultivation techniques and integrated nutrient management can significantly enhance yield, profitability and sustainability in dragon fruit farming, making it an attractive agribusiness for Indian farmers.