DefinePK

Abstract

This study examines the investment appraisal of banana orchards cultivated in the Sindh province of Pakistan. Sindh is a major banana producer province in the country which produces 87 percent of Pakistan's total banana production. A sample of 240 farmers was selected through a purposive sampling technique from three districts of Sindh, Khairpur Mir’s, Hyderabad, and Thatta. A structured interview schedule was used to collect data from the respondents. The results show that the majority of the farmers were illiterate with sufficient farming experience. The average productivity per acre was (425.39 maunds) this was higher than the national average production, where the rate per maund was Rs.1308.87. Moreover, net present value (NPV) results show that the business is profitable as the sum of all discounted net returns is a positive number. Despite high potential and favorable climate conditions, the investment in this agribusiness is low. Thus, the government has to arrange awareness seminars and meetings on investment in banana orchards for the farmers. This will help to extend the banana cultivation in Sindh and other provinces of the country. In this way, the country can export quality fruit and can earn much more profit.