MANGO

 
 
1.                  INTRODUCTION
 
Mango (Mangifera indica L.) belonging to Family Anacardiaceae is the most important
commercially grown fruit crop of the country.  It is called the king of fruits.  India has the richest
collection of mango cultivars. 
 
2.                  OBJECTIVE
 
The main objective of the study is to promote commercial cultivation of the crop by small and
middle scale farmers by projecting a one acre bankable model project.
 
3.                  BACKGROUND

3.1              Origin
 
Cultivation of mango is believed to have originated in S.E. Asia. Mango is being cultivated in
southern Asia for nearly six thousand years.
 
3.2              Area & Production
 
India ranks first among world’s mango producing countries accounting for about 50% of the
world’s mango production.  Other major mango producing countries include China, Thailand,
Mexico, Pakistan, Philippines, Indonesia, Brazil, Nigeria and Egypt. India’s share is around 52%
of world production i.e. 12 million tonnes as against world’s production of 23 million tonnes
(2002-03).
 
An increasing trend has been observed in world mango production averaging 22 million metric
tonnes per year. Worldwide production is mostly concentrated in Asia, accounting for 75%
followed by South and Northern America with about 10% share.
 
Area under cultivation and production trends of mangoes in India during 1997-98 to 2001-02 are
depicted in graphs 1 & 2.  Major producing States are Andhra Pradesh, Bihar, Gujarat,
Karnataka, Maharashtra, Orissa, Tamil Nadu, Uttar Pradesh and West Bengal.  Other States
where mangoes are grown include Madhya Pradesh, Kerala, Haryana, Punjab etc. (Ref. Table-
1)
 
           
 
           
 
 
 
 
 
 
The state-wise area and production of mangoes are given in Table 1 below:
 
Table 1 : State-wise Area, Production & Productivity
of Mangoes during 2001-02
 
State Area Production
(‘000 Ha.) (‘000 MT)
Andhra Pradesh 341.2 2445.8
Uttar Pradesh 253.0 1950.0
Maharashtra 164.4 559.0
Bihar 139.3 1253.5
Karnataka 115.4 1130.6
Tamil Nadu 110.8 438.7
Orissa 107.3 402.4
West Bengal 65.4 585.0
Gujarat 65.3 457.6
Others 213.7 797.6
TOTAL 1575.8 10020.2
Source : Database of National Horticulture Board, Ministry of Agriculture , Govt. of India.
 
The crop accounts for 39% of area under fruit corps in India and 23% of production of these
crops.
 
3.3              Economic Importance
The fruit is very popular with the masses due to its wide range of adaptability, high nutritive
value, richness in variety, delicious taste and excellent flavour.  It is a rich source of vitamin A
and C. The fruit is consumed raw or ripe. Good mango varieties contain 20% of total soluble
sugars. The acid content of ripe desert fruit varies from 0.2 to 0.5 % and protein content is about
1 %.
 
Raw fruits of local varieties of mango trees are used for preparing various traditional products
like raw slices in brine, amchur, pickle, murabba, chutney, panhe (sharabat) etc. Presently, the
raw fruit of local varieties of mango are used for preparing pickle and raw slices in brine on
commercial scale while fruits of Alphonso variety are used for squash in coastal western zone.
 
The wood is used as timber, and dried twigs are used for religious purposes. The mango kernel
also contains about 8-10% good quality fat which can be used for saponification.  Its starch is
used in confectionery industry.
 
Mango also has medicinal uses. The ripe fruit has fattening, diuretic and laxative properties. It
helps to increase digestive capacity.
 
4.                  MARKET ANALYSIS AND STRATEGY
 
4.1              Demand and Supply patterns
 
4.1.1        World Trade
 
Among internationally traded tropical fruits, mango ranks only second to pineapple in quantity
and value. Major markets for fresh and dried mangoes in 1998 were: Malaysia, Japan,
Singapore, Hong Kong and the Netherlands, while for canned mango were: Netherlands,
Australia, United Kingdom, Germany, France and USA.
 
Southeast Asian buyers consume mangoes all year round. Their supplies come mainly from
India, Pakistan, Indonesia, Thailand, Malaysia, Philippines, Australia and most recently South
Africa.
 
Each exporting country has its own varieties, which differ in shape, colour and flavour. Prices
are very low for Indonesian and Thailand fruit and are on the higher side for Indian fruit. In the
United States of America, the prices vary with the season, higher prices found during February
and March, when mango availability is lowest.

Most international trade in fresh mangoes takes place within short distances. Mexico, Haiti and
Brazil account for the majority of North America’s imports.  India and Pakistan are the
predominant suppliers to the West Asian market.  Southeast Asian countries get most of
their supplies from the Philippines and Thailand. European Union buyers source mangoes from
South America and Asia. Although Asia accounts for 75 percent of world production, its
dominance does not translate into international trade.
 
 4.1.2        International Markets for Indian Mango
 
Asian producers find it easier to expand sales to the European Union.  Europe’s acceptance of
different varieties is greater, because of a large demand from Asian immigrant
groups. Phytosanitaryrestrictions are less stringent.  Transportation costs are not as big a factor
in exporting mangoes to the European Union as in exporting to the United States market: for
example, India and Pakistan are able to compete with non-Asian suppliers to the European
Union, whereas proximity gives Mexico and Haiti a clear advantage in supplying to the United
States market.

Fifty-four percent of European Union imports enter during the periods May to July and
November to December, with peak imports in June. French imports reach peak in April and
May, whereas United Kingdom imports are concentrated during the May to July.  German
imports are spread more evenly throughout the year. Of the top suppliers, Brazil provided chiefly
during the period November to December, the United States during June to October, South
Africa during January to April and Venezuela during April to July. Pakistan supplies the majority
of its exports to the European Union during June and July; Indian exports take place mainly
during the month of May.
 
Although a lion’s share of Indian mango goes to the Gulf countries, efforts are being made to
exploit European, American and Asian markets. About 13,000 MT of Alphonso variety is
exported to Middle East, UK and Netherlands every year.  
 
The different products of mango which are exported include mango chutney, pickles, jam,
squash, pulp, juice, nectar and slices. These are being exported to U.K., U.S.A., Kuwait and
Russia. Besides these, the fresh mangoes are being exported to Bangladesh, Bahrain, France,
Kuwait, Malaysia, Nepal, Singapore and U.K.
 
The varieties in demand at the international market include Kent, Tomy Atkin, Alphonso and
Kesar.  Varieties such as Alphonso, Dashehari, Kesar, Banganapalli and several other varieties
that are currently in demand in the international markets are produced and exported from India.
 
‘Mahamango’, a co-operative society was established in 1991 with the support of Maharashtra
State Agricultural & Marketing Board (Pune). This was mainly formed to boost the export of
Alphonso mangoes as well as for domestic marketing.  Facilities like pre-cooling, cold storages,
pack house, grading packing line etc. have been made available at the facility centre of
Mahamango for which the financial assistance was given by APEDA, New Delhi and
Maharashtra State Agricultural & Marketing Board (Pune).
 
A similar type of association named ‘MANGROW’ has been formed for the export of Kesar
mangoes from Aurangabad district of Maharashtra.
 
4.2              Import/Export trends
 
India's mango exports were estimated at 45 thousand tonnes worth Rs 100 crore (Rs 1 billion)
in 2002-03.  Fresh mangoes are exported to Bangladesh, U.A.E., Saudi Arabia and U.K. and
mango pulp to U.A.E., Saudi Arabia, Kuwait, Netherlands, U.S.A and U.K.  Processed mango
products viz. pickle and chutney are exported to U.K., U.A.E., Saudi Arabia, Germany,
Netherlands, U.S.A and U.K.
 
The trend in export of mangoes during the period 1999-2000 to 2002-03 is given in  Graph 3 and
destination wise exports during 2001-02 are shown in Table-2.

Table-2 : Country-wise export of mangoes

from India during 2001-02.

Country Quantity Value

(‘000 (Rs.  in
Tonnes) crores)
Bangladesh 21.03 24.10
U.A.E 12.81 28.19
Saudi Arabia 2.94 6.62
U.K. 1.37 4.54
Kuwait 0.98 3.10
Oman 0.88 1.88
U.S.A. 0.73 1.63
Bahrain 0.60 2.01
Others 3.09 8.92
Total 44.43 80.99
 Source : APEDA, New Delhi

  
 The biggest importer of mango is the United States importing an average of 1,85,000 metric
tonnes annually (about 45% of the total world import volume). Europe’s top importers of mango
include Netherlands, France, UK, Germany and Belgium with an aggregate average volume of
95,000 metric tonnes imported annually.
 
Of late Asian market has been expanding.  China's market has been increasing and ranks
second among the top importers in the world.  Other Asian markets such as Malaysia, UAE,
Saudi Arabia and Singapore have been among the top ten importers exhibiting an export growth
average of 20% annually.
 
4.3              Analysis and Future Strategy
 
Mango has an established export market and poses bright opportunities for export in the
international market whether in fresh or processed forms. Similarly, the mango industry has
provided livelihood opportunities to its growers and those involved in its marketing
channel. Creation of essential infra-structure for preservation, cold storage, refrigerated
transportation, rapid transit, grading, processing, packaging and quality control are the important
aspects which needs more attention.
 
There is need for developing processing industries in the southern region of the country where
post harvest losses in handling and marketing are higher.  
 
There is scope to establish mango preservation factories in cooperative sector.  Mango growers
cooperatives on the lines of Mahamango need to encouraged to come up in major mango
producing States.  This will add to their income through processing and create additional
employment opportunities for the rural people.
 
Considerable amount of waste material, e.g, mango stones, peels remain unutilized which can
be used properly by the processors to earn more profit.  This will also help to improve sanitary
conditions around factory premises.
 
5.                  PRODUCTION TECHNOLOGY
 
5.1              Agro-climatic requirements
 
Mango is well adapted to tropical and sub-tropical climates. It thrives well in almost all the
regions of the country but cannot be grown commercially in areas above 600 m. It cannot stand
severe frost, especially when the tree is young. High temperature by itself is not so injurious to
mango, but in combination with low humidity and high winds, it affects the tree adversely.
 
Mango varieties usually thrive well in places with rainfall in the range of 75-375 cm. /annum and
dry season. The distribution of rainfall is more important than its amount. Dry weather before
blossoming is conducive to profuse flowering. Rain during flowering is detrimental to the crop as
it interferes with pollination. However, rain during fruit development is good but heavy rains
cause damage to ripening fruits. Strong winds and cyclones during fruiting season can play
havoc as they cause excessive fruit drop.
 
Loamy, alluvial, well drained, aerated and deep soils rich in organic matter with a pH range of
5.5 to 7.5 are ideal for mango cultivation.
 
5.2              Growing and Potential Belts
 
Mango is cultivated in almost all the states of India. The state-wise growing belts are given in
the following :
 
State Growing belts
Andhra Pradesh Krishna, East and West Godavari, Vishakhapatnam,
Srikakulam, Chittoor, Adilabad, Khamman, Vijaynagar
Chhattisgarh Jabalpur, Raipur, Bastar
Gujarat Bhavnagar, Surat, Valsad, Junagarh, Mehsana, Khera
Haryana Karnal, Kurushetra
Jammu & Kashmir Jammu, Kathwa, Udhampur
Jharkhand Ranchi, Sindega, Gumla, Hazaribagh, Dumka, Sahibganj,
Godda.
Karnataka Kolar, Bangalore, Tumkur, Kagu
Kerala Kannur, Palakkad, Trissur, Malappuram
Madhya Pradesh Rewa, Satna, Durg, Bilaspur, Bastar, Ramnandgaon, Rajgari,
Jabalpur, Katni, Balagha
Maharashtra Ratnagiri, Sindhudurg, Raigarh
Orissa Sonepur, Bolangir, Gajapati, Koraput, Rayagada, Gunpur,
Malkanpuri, Dhenkanal, Ganjam, Puri
Punjab Gurdaspur, Hoshiarpur, Ropar
 State Growing belts
Tamil Nadu Dharmapuri, Vellore, Tiruvallur, Theni, Madurai
Uttaranchal Almora, Nainital, Dehradun, Bageshwar, UdhamSingh Nagar,
Haridwar
Uttar Pradesh Saharanpur, Bulandshahar, Lucknow, Faizabad, Varanasi
West Bengal Malda, Murshidabad, Nadia
 
5.3              Varieties Cultivated
 
In India, about 1,500 varieties of mango are grown including 1,000 commercial varieties. Each
of the main varieties of mango has an unique taste and flavour.
 
Based on time of ripening , varieties may be classified as under :
 
Early - Bombai, Bombay Green , Himsagar, Kesar, Suvernarekha
Mid-season - Alphonso, Mankurad, Bangalora, Vanraj, Banganapalli,
Dashehari, Langra, Kishen Bhog, Zardalu, Mankurad
Late - Fazli, Fernandin, Mulgoa, Neelum, Chausa
 
Hybrids:
 
Amrapalli (Dashehari x Neelum), Mallika (Neelum x Dashehari), Arka Aruna (Banganapalli x
Alphonso), Arka Puneet (Alphonso x Janardhan Pasand), Arka Neelkiran (Alpohonso x
Neelum), Ratna (Neelum x Alphonso), Sindhu (Ratna x Alphonso), Au Rumani (Rumani x
Mulgoa), Manjeera (Rumani x Neelum), PKM 1 (Chinnasuvernarekha x Neelum), Alfazli, Sunder
Langra, Sabri, Jawahar, Neelphonso, Neeleshan, Neeleshwari, PKM 2 (very few of these hybrid
varieties are grown commercially in the country).
 
The important mango varieties cultivated in different states of India are given below :
 
State Varieties grown
Andhra Pradesh - Allumpur Baneshan, Banganapalli, Bangalora, Cherukurasam,
Himayuddin, Suvernarekha, Neelum, Totapuri
Bihar - Bathua, Bombai, Himsagar, Kishen Bhog, Sukul, Gulab Khas,
Zardalu, Langra, Chausa, Dashehari, Fazli
Goa - Fernandin, Mankurad
Gujarat - Alphonso, Kesar, Rajapuri, Vanraj, Jamadar, Totapuri, Neelum,
Dashehari, Langra
Haryana - Dashehari, Langra, Sarauli, Chausa, Fazli
Himachal Pradesh - Chausa, Dashehari, Langra
Jharkhand - Jardalu, Amrapalli, Mallika, Bombai, Langra, Himsagar, Chausa,
Gulabkhas
Karnataka - Alphonso, Bangalora, Mulgoa, Neelum, Pairi, Baganapalli, Totapuri
Kerala - Mundappa, Olour, Pairi
Madhya Pradesh - Alphonso, Bombay Green, Langra, Sunderja, Dashehari, Fazli,
Neelum, Amrapalli, Mallika
Maharashtra - Alphonso, Mankurad, Mulgoa, Pairi, Rajapuri, Kesar, Gulabi, Vanraj
Orissa - Baneshan, Langra, Neelum, Suvarnarekha, Amrapalli, Mallika
Punjab - Dashehari, Langra, Chausa, Malda
Rajasthan - Bombay Green, Chausa, Dashehari, Langra
Tamil Nadu - Banganapalli, Bangalora, Neelum, Rumani, Mulgoa, Alphonso,
 State Varieties grown
Totapuri
Uttar Pradesh - Bombay Green, Dashehari, Langra, Safeda Lucknow, Chausa, Fazli
West Bengal - Bombai, Himsagar, Kishen Bhog, Langra, Fazli, Gulabkhas,
Amrapalli, Mallika
 
5.4              Planting
 
5.4.1        Planting Material
 
Mango can be propagated from seed or propagated vegetatively. Plants are generally
propagated vegetatively by using several techniques like veneer grafting, inarching and epicotyl
grafting etc.
 
5.4.2        Planting Season
 
Planting is usually done in the month of July-August in rainfed areas and during February-March
in irrigated areas.  In case of heavy rainfall zones, planting is taken up at the end of rainy
season.
 
5.4.3        Spacing
 
The planting distance is 10m. x 10m. and 12m. x 12m. in dry and moist zones respectively.  In
the model scheme, a spacing of 8m. x 8m. with a population of 63 plants per acre has been
considered which was observed to be common in areas covered during a field study.
 
5.5              Training of Plants
 
Training of plants in the initial stages of growth is very important to give them a proper shape
specially in cases where the graft has branched too low.  
 
5.6               Nutrition
 
Fertilizers may be applied in two split doses , one half immediately after the harvesting of fruits
in June/July and the other half in October, in both young and old orchards followed by irrigation
if there are no rains. Foliar application of 3 % urea in sandy soils is recommended before
flowering.
 
The following table gives the details of fertilizer applied (depending upon the age of the plants) :
 
Age of the plant Fertilizer applied
(in years)
1* 100g. N, 50g. P2O5, 100g. K2O
10 1kg. N, 500g. P2O5, 1kg. K2O
11 -do-
*The doses applied in the subsequent years should be increased every year upto
10 years in the multiple of the first year’s dose.
Well decomposed farm-yard manure may be applied every year. For trench application of
fertilizers, 400g. each of N and K2O and 200g. of P2O5 per plant should be provided. Micro-
nutrients may be applied as per the requirement in the form of foliar sprays.
 
5.7               Irrigation
 
The frequency and amount of irrigation to be provided depends on the type of soil, prevailing
climatic conditions, rainfall and its distribution and lastly the age of the trees. No irrigation is
required during the monsoon months unless there are long spells of drought.
 
Age of the plant (in Irrigation schedule
years)/Growth stage
1       Irrigated at an interval of 2-3 days during dry season.
2-5       Irrigation interval- 4-5 days .
5-8/ fruit set to maturity       Irrigated after every 10-15 days
Full bearing stage       2-3 irrigations after fruit set.
 
Frequent irrigation during 2-3 months prior to the flowering season is not advisable as it is likely
to promote vegetative growth at the expense of flowering. Irrigation should be given at 50% field
capacity. Generally inter-crops are grown during the early years of plantation and hence
frequency and method of irrigation has to be adjusted accordingly. The method usually followed
for irrigating mango plants is basin irrigation. However, use of Drip Irrigation will not only reduce
the water requirements but will also help in fertigation in root zones of the plants.
 
5.8              Intercultural Operations
 
The frequency and the time of inter-culture operations vary with age of the orchards and
existence of inter-crops. The weed problem may not exist immediately after planting the mango
crop but it is advisable to break the crust with hand hoe each time after 10-15 irrigations are
applied. In case of mono-cropping, the area between the basins should be ploughed at least
three times in a year i.e. during the pre-monsoon, post-monsoon period and in the last week of
November.
 
5.9              Inter-cropping
 
Intercropping can be taken up till the mango trees attain suitable height and develop canopy (at
5-6 years of age).Leguminous crops like green gram, black gram, gram etc., cereals like wheat,
oilseeds like mustard, sesame and groundnut, vegetable crops such as cabbage, cauliflower,
tomato, potato, brinjal, cucumber, pumpkin, bitter gourd, tinda, lady’s finger etc. and spices like
chillies can be grown as intercrops. The partial shade loving crops like pineapple, ginger,
turmeric etc. can be cultivated in fully grown orchards. In addition to field crops, some short
duration , less exhaustive and dwarf type inter- fillers like papaya, guava, peach, plum etc. can
be grown till these do not interfere with the main mango crop .It is advisable to take vegetable
crops as inter crops for better returns.
 
The average cost of inter cropping would be Rs.10,000 / Acre and it would yield on an average
of 6 tonnes / Acres.
 
5.10          Crop Management
 
5.10.1    Regulation of Bearing
 
Proper cultural practices like addition of fertilizers and control of diseases and insect pests may
be adopted to regulate growth and bearing.  Regular bearing varieties viz. Dashehari and
Amrapalli may be grown. Deblossoming of the panicles with NAA @ 200 ppm. (20 g./100 l.
water) during ‘on’ year may help to regulate the bearing.
 
5.10.2    Regulation of Fruit Drop
 
Embryo abortion, climatic factors , disturbed water relation, lack of nutrition, attack of disease
and pest, hormonal imbalances are the major factors that lead to fruit drop. A spray of Alar (B-
Nine) @ 100 ppm. or 20 ppm. 2,4-D (2g. in 100 l. water) in the last week of April or in the last
week of May will control to some extent the summer fruit drop in Langra & Dashehari. 
 
5.11          Plant Protection Measures
 
5.11.1    Insect Pests
 
Insect pests mostly observed are mealy bug, hopper, inflorescence midge, fruit fly and scale
insects.  For controlling these insects, spraying with carbaryl, monocrotophos, phosphamidon &
methyl parathion are recommended.
 
5.11.2    Diseases and Disorders
 
The crop is suspect to diseases like powdery mildew, anthracnose, die back, blight, red rust,
sooty mould, etc.  In order to control these diseases spraying of appropriate
chemicals/fungicides have to be undertaken preferably on preventive basis.
 
Disorders can also affect the crop if proper case and control measures are not taken.  The
major among these are malformation, biennial bearing, fruit drop, black tip, clustering etc.  The
grower needs to seek advice and professional assistance to prevent/control diseases and
disorders in the crop.
 
5.12          Harvesting  and Yield
 
The orchard starts bearing from sixth year onwards and the economic life of a mango tree
exceeds 35 years.
 
Yield of fruits varies considerably according to the variety, climatic conditions, plant population
etc.  On an average, the yield ranges from 5 to 9 t/acre.  Grafted plants start bearing early. 
 
6.                  POST HARVEST MANAGEMENT
 
6.1              Grading
 
Grading is mainly based on the size, colour and maturity of the fruits. While grading, smaller
fruits are separated from the larger ones in order to achieve uniform ripening. Immature,
overripe, damaged and diseased fruits are discarded in the process of grading.
 
The fruits are generally harvested early in the season at a pre-mature stage to capture early
market. Such fruits are ripened by uniformly dipping in 750 ppm. ethrel (1.8ml./l.) in hot water at
52±20 C for 5 minutes. within 4-8 days under ambient conditions. Mature fruits are ripened with
lower doses of ethrel for uniform colour development.
 
6.2              Storage
  
The mature green fruits can be stored at room temperature for about 4-10 days depending upon
the variety. The harvested fruits are pre-cooled to 10-12 0 C and then stored at an appropriate
temperature. The fruits of Dashehari, Mallika and Amrapalli should be stored at 12 0 C, Langra at
140 C and Chausa at 80 C with 85-90 % relative humidity.
 
6.3              Packing
 
Wooden or cardboard boxes, rectangular in shape and bamboo baskets having capacity to
accommodate 5 to 8kg. of fruit is used for packaging and transportation of mango fruits. The
most commonly used containers are ventilated card board boxes of corrugated fibre board
(CFB) cartons. Size of the box varies to accommodate 5 to 10 kg. of fruit.
 
6.4              Transportation
 
Road transport by trucks is the most popular mode of transport due to easy approach from
orchards to the market.
 
6.5              Marketing
 
Marketing of the produce is mainly controlled by intermediaries like wholesalers and
commission agents.
 
7.                  TECHNOLOGY SOURCES
 
The major sources for technology, as well as quality planting material are:
 
(i)                  Central Institute for Sub-tropical Horticulture, P.O. Kakori, Lucknow-226002,
Uttar Pradesh, Tel (0522)-2841022/1023.
(ii)                Indian Institute of Horticultural Research, Hessarghatta, Bangalore-560089,
Karnataka, Tel (080)-28466471/6353.
(iii)               Indian Agricultural Research Institute, New Delhi-110012.
(iv)              Narendra Deva University of Agriculture & Technology, Kumarganj, Faizabad-
224229, Uttar Pradesh, Tel (05270)-2262097/2161.
(v)                Acharya NG Ranga Agricultural University, Rajendra Nagar, Hyderabad-
500030, Andhra Pradesh, Tel (040)-24015078.
(vi)              University of Agricultural Sciences, Dharwad-580005, Karnataka, Tel (0836)-
2447783.
(vii)             Mahatma Phule Krishi Vidyapeeth, Rahuri-413722, Maharashtra, Tel (02426)
2243208.
(viii)           Dr. Balasaheb Sawant Konkan Krishi Vidyapeeth, Dapoli District, Ratnagiri-
415712, Maharashtra, Tel (02358)-2282064.
(ix)              Directorate of Horticulture, Shivajinagar, Pune, Maharashtra-560003
(x)                Directorate of Horticulture, Lalbagh, Bangalore, Karnataka.
(xi)              Directorate of Horticulture, Hyderabad, Andhra Pradesh.
(xii)             Directorate of Horticulture, Lucknow, Uttar Pradesh
 
 
 
 
 
 
 
8.                  ECONOMICS OF A ONE ACRE MODEL
 
8.1              High quality commercial cultivation of crop by using improved planting material and drip
irrigation leads to multiple benefits viz.
 
                     Synchronized  growth, flowering and harvesting;
                     Reduction in variation of off-type and non-fruit plants;
                     Improved fruit quality;
                     Early maturity;
                     Increase in average productivity;
                     High efficiency in water application and water use efficiency;
                     High fertilizer use efficiency;
                     Minimum incidence of pests and diseases.
 
Costs & Returns:
 
8.2              A one acre plantation of the crop is a highly viable proposition.  The cost components of
such a model along with the basis for costing are exhibited in Annexures I & II.   A
summary is given in the figure below.  The project cost works out to around Rs.1.50
lakhs per acre.
 
COST OF PROJECT
             
                                                                                                               (Amount in Rs.)
Sl. Component Proposed
No. Expenditure
1. Cultivation Expenses
(i) Cost of planting material 2,000
(ii) Manures & fertilizers 5,000
(iii) Insecticides & pesticides 2,000
(iv) Cost of Labour 8,400
(v) Others, if any, (Power) 3,600
Subtotal 21,000
2. Irrigation
(i) Tube-well/submersible pump 45,000
(ii) Cost of Pipeline -
(iii) Others, if any, please specify -
Subtotal 45,000
3. Cost of Drip/Sprinkler 25,000
4. Infrastructure
(i) Store & pump house 15,000
(ii) Labour room 5,000
(iii) Agriculture Equipments 5,4000
Subtotal 25,400
5. Land Development
(i) Soil Leveling 4,000
(ii) Fencing 29,600
 Subtotal 33,600
6. Land, if newly purchased (Please indicate the year)*
Grand Total 1,50,000
         *Cost of newly purchased land will be limited to one-tenth of the total project cost
 
8.3              The major components of the model are:
 
                     Land Development:  (Rs.4.0 thousand):  This is the labour cost of shaping and
dressing the land site and developing a layout.
 
                     Fencing (Rs.29.60 thousand):  It is necessary to guard the orchard by barbed
wire fencing to safeguard the valuable produce from poaching.
 
                     Irrigation Infra-structure (Rs.45 thousand):  For effective working with drip
irrigation system, it is necessary to install a bore well with diesel/electric pumpset
and motor.  This is part cost of tube-well.
 
                     Drip Irrigation & Fertigation System (Rs.25.0 thousand):  This is average cost of
one acre drip system for mango inclusive of the cost of fertigation
equipment.  The actual cost will vary depending on location, plant population and
plot geometry.
 
                     Equipment/Implements (Rs.5.4 thousand):  For investment on improved
manually operated essential implements a provision of another Rs.10 thousand
is included.
 
                     Building and Storage (Rs.20.0 thousand):  A one acre orchard would require
minimally a labour shed and a store-cum pump house.
 
                     Cultivation (Rs.21.0 thousand):  This is to cover costs of land preparation and
planting operations, planting material, inputs and power.
 
8.4              Labour cost has been put at an average of Rs.70 per man-day.  The actual cost will
vary from location to location depending upon minimum wage levels or prevailing wage
levels for skilled and unskilled labour.
 
8.5              Recurring Production Cost: Recurring production costs in the pre & post-operative
period are exhibited in Annexures III & III A respectively.  The main components are
planting material, land preparation, inputs .application ( FYM, fertilizers, liming material,
plant growth regulators, plant protection chemicals etc.), labour cost on application of
inputs, power, inter-cultural and other farm operations, interest on term loan, harvesting,
packing and transportation. 
 
8.6              Returns from the Project:  In the development stage returns from inter-cropping are
estimated at Rs.25,000 annually.  The yield from the plantation is estimated at 5 tonnes
in the first year of bearing rising to 7 tonnes.  The produce has been valued at Rs.
10,000 per tonne in this exercise.
 
Project Financing:
 
8.7              Balance Sheet:  The projected balance sheet of the model is given at Annexure
IV.  There would be three sources of financing the project as below:
 
                           Source                                              Rs. Thousand
 
                        Farmer’s share                                               75.00                          
                        Capital subsidy                                               30.00  
                        Term loan                                                        45.00
                        Total                                                             150.00
 
8.8              Profit & Loss Account:  The cash flow statement may be seen in Annexure
V.   Annexure VI projects the profit and loss account of the model.  Gross profit
increases from Rs.25.5 thousand per annum to Rs.43.3 thousand per annum in the first
three years of bearing and thereafter more or less stabilise.
 
8.9              Repayment of Term Loan:   The term loan will be repaid in 11 equated 6 monthly
installments with a moratorium of 72 months.  The rate of interest would have to be
negotiated with the financing bank. It has been put at 12% in the model (vide Annexure
VII).  The repayment schedule has been presented at Annexure-VII A. 
 
8.10          Depreciation calculations are given in Annexure VIII.
 
Project Viability:
 
8.11          IRR/BCR:  The viability of the project is assessed in Annexure IX over a period of
15 years.  The IRR works out to 32.59 and the BCR to 1.9.
 
8.12          The Debt Service coverage ratio calculations are presented in Annexure X.  The
average DSCR works out to 3.83. 
 
8.13          Payback Period:  On the basis of costs and returns of the model, the pay back
period is estimated at 4.63 years (vide Annexure XI). 
 
8.14          Break-even Point:  The break even point will be reached in the 3rd year.  At this point
fixed cost would work out to 55.3% of gross sales - vide Annexure XII.