Profitability and sustainability of Assam lemon for border cropping in tea plantations of Assam: A cash-flow analysis of grower enterprises

Abstract

Assam lemon (Citrus limon (L.) Burm. f.), locally known as Kaji Nemu, is an important perennial horticultural crop of Assam and is also documented as a border crop in diversified tea plantations. The present study evaluates the profitability and financial sustainability of the Assam lemon enterprise using primary data collected from 197 commercial growers in Tinsukia district during 2022–2024. Establishment cost, maintenance cost, yield, cash inflow and cash outflow were organized over a 13-year economic horizon. Financial feasibility was assessed through payback period, net present value, internal rate of return and benefit-cost ratio at a 12 per cent discount rate. Based on the cash-flow series reported in the study, the net present value was Rs. 11,06,861.43 per acre, the internal rate of return was 42.83 per cent, the benefit-cost ratio was 1.93 and the simple payback period was approximately 5.87 years. Positive annual cash flow commenced in the fifth year and strengthened as the plantation reached mature production. The results indicate that the lemon component can provide a financially attractive diversification option for tea-based plantation systems where it is established along garden borders. The original field schedule, however, did not separately quantify the costs and returns of the tea component; the results therefore represent the economics of Assam lemon rather than a comparative tea-plus-lemon system.