Economic Evaluation of Medicinal Plant Cultivation in Kerman City

Document Type : Research

Authors

1 Economic, Social and Extension Research Department, Kerman Agricultural and Natural Resources Research and Education Center, AREEO, Kerman, Iran

2 Forests and Rangelands Research Department, Kerman Agricultural and Natural Resources Research and Education Center, AREEO, City, Iran

Abstract

Due to the importance of medicinal plants and their derivatives in the health of human societies and their high economic potential as a source of reliable income, in the present study, the production of medicinal plants (yarrow, rosemary, damask rose, and marigold) was evaluated in a field of 90 ha in Kerman city. The study was conducted in 2022 and the data was collected by documentary method. To calculate the current income and costs of the project, the mean income and costs of the mentioned plants were considered. In order to achieve the objectives of the study, the indicators of net present value, internal rate of return and payback period of capital were used. According to the results, the total investment costs of the project was calculated as 98.43 billion Rials, the net present value at a discount rate of 18% was 169.638 billion Rials, and the internal rate of return on investment was 74.64%. Also, the capital return period will be 2.41 years normally and with a discount rate of 18%, it will be equivalent to 2.73 years. In total, the results showed that the production of medicinal plants in the study area is economical. Therefore, by proposing extension planning for continuous training of farmers in increasing the productivity of these plants, considering their profitability, planning for the construction of processing units for the mentioned crops in the region is recommended.

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Research in Horticultural Sciences
Volume 1, Issue 2 - Serial Number 2
April 2023
Pages 291-304

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