Commodity - 1 MANGO

2. 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.

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.

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.
Production mangoes in India during 2006-2007 were shown in below table.
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 2006-2007

State Production In Percentage Share in

Tonnes Total
ANDHRA PRADESH 3194300.00 25.48
\UTTAR PRADESH 2673300.00 21.32
KARNATAKA 1236800.00 9.86
BIHAR 1222700.00 9.75
OTHERS 809100.00 6.45
GUJARAT 772100.00 6.16
MAHARASHTRA 638600.00 5.09
TAMIL NADU 537800.00 4.29
WEST BENGAL 513300.00 4.09
KERALA 511100.00 4.08
ORRISA 428800.00 3.42
Total 12,537,900
Source : Database of National Horticulture Board, Ministry of Agriculture , Govt. of India.

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
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. Phytosanitary restrictions 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 79,060.88 MT worth Rs 14,193.99 lakh in

2006-2007.
The trend in export of mangoes during (Value in Rs. Lakh, Quantity in MT)
 QTY Value QTY Value QTY Value
Country (2004-2005) (2004-2005) (2005-2006) (2005-2006) (2006-2007) (2006-2007)
U.A.E. 10,338.61 2,903.54 26,533.76 7,304.40 22,045.51 6,581.02
BANGLADESH 32,503.22 2,971.66 32,770.90 2,766.36 42,887.52 3,994.83
U.K. 1,308.56 745.77 839.97 537.93 1,883.19 1,141.28
NEPAL 3,400.94 269.64 4,116.01 322.98 8,055.73 707.26
SAUDI ARABIA 2,300.53 747.78 1,564.15 442.2 1,323.56 422.32
KUWAIT 267.96 150.45 104.59 107.32 428.04 244.89
BAHRAIN 848.69 214.06 620.81 243.56 489.32 171.76
SINGAPORE 159.63 84.46 242.24 91.83 230.86 131.8
OMAN 143.4 42.74 226.69 75.79 170.08 118.65
SWITZERLAND 39.7 23.72 9.01 14.72 167.71 105.41
MALAYSIA 185 49.8 243.66 60.21 332.22 86.72
NETHERLANDS 532 212.68 260.86 131.52 242.79 84.87
JAPAN 237.24 123.36 70.16 47.3 74.54 54.05
QATAR 160.29 48.49 40.45 21.8 90.99 45.88
CANADA 28.19 13.69 323.77 136.49 75.11 44.84
GERMANY 82.55 43.33 4.25 3.66 58.84 40.3
HONG KONG 38.5 23.78 29.88 17.83 49.92 33.47
BELGIUM 31.45 32.79 20 8.53 57.03 29.53
FRANCE 41.79 13.38 158.84 74.01 63.44 28.99
YAMEN ARAB
REPU 228.75 44.49 680 116.49 63.8 21.39
UKRAINE 18.52 8.68 0 0 25.84 14.15
AUSTRALIA 1.5 0.64 5.97 1.31 4.44 9.66
BRUNEI 9.88 4.09 6.3 1.89 14.6 9.33
KOREA
REPUBLIC 0.3 0.42 27.39 11.72 21.69 9.19
BARBODOS 0 0 0 0 19 9.08
RUSSIA 68.03 20.34 0 0 4.94 8.12
MALTA 0 0 54 23.31 18 7.83
CONGO 1 0.15 0 0 58.8 6.83
NORWAY 117.88 28.31 0.9 0.26 10.67 4.88
OTHER
COUNTRY 0 0 0 0 5.77 4.79
VIETNAM 0 0 61 17.65 20.5 3.74
BHUTAN 0 0 0 0 40 3.2
ITALY 0.7 0.97 2 0.29 3.9 3.18
SPAIN 0.55 0.27 0 0 1.09 1.95
MALDIVES 4.4 1.2 20.82 5.14 6.52 1.68
PAKISTAN 0 0 34.18 6.32 3 1.57
SWAJILAND 2.16 2.25 0.4 0.27 0.8 1.17
CAYMAN
ISLANDS 0 0 0 0 1.8 0.85
AUSTRIA 0.07 0.05 0 0 1.29 0.83
NEWZEALAND 4.88 1.85 18.5 5.97 3 0.74
THAILAND 5.44 7.58 0 0 0.98 0.62
POLAND 0 0 0 0 0.31 0.46
BAHAMAS 0 0 0 0 0.6 0.3
BOSNIA-
HRZGOVIN 1.17 0.17 0.5 0.68 2.5 0.27
SWEDEN 0.25 0.14 0.56 0.09 0.2 0.14
CHINA 1.09 0.5 0.55 0.18 0.1 0.06
EGYPT 0 0 0 0 0.07 0.02
TURKEY 23.36 13.03 0 0 0.03 0.02
U.S.A. 34.86 18.24 83.21 42.29 0.06 0.02
DENMARK 0.02 0.02 0 0 0.05 0.02
SOUTH AFRICA 0.4 0.36 21 2.47 0 0.01
PORTUGAL 41.15 22.6 0 0 0.01 0.01
SRI LANKA 10 1.29 0 0 0.1 0.01
ALGERIA 0 0 34 19.25 0 0
INDONESIA 0 0 0 0 0.01 0
GEORGIA 0.01 0 0 0 0 0
 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
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,
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-
120 C and then stored at an appropriate temperature. The fruits of Dashehari,
Mallika and Amrapalli should be stored at 120 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:

• Central Institute for Sub-tropical Horticulture, P.O. Kakori,

Lucknow-226002, Uttar Pradesh, Tel (0522)-2841022/1023.
• Indian Institute of Horticultural Research, Hessarghatta,
Bangalore-560089, Karnataka, Tel (080)-28466471/6353.
• Indian Agricultural Research Institute, New Delhi-110012.
• Narendra Deva University of Agriculture & Technology,
Kumarganj, Faizabad-224229, Uttar Pradesh, Tel (05270)-
2262097/2161.
• Acharya NG Ranga Agricultural University, Rajendra Nagar,
Hyderabad-500030, Andhra Pradesh, Tel (040)-24015078.
• University of Agricultural Sciences, Dharwad-580005,
Karnataka, Tel (0836)-2447783.
 • Mahatma Phule Krishi Vidyapeeth, Rahuri-413722,
Maharashtra, Tel (02426) 2243208.
• Dr. Balasaheb Sawant Konkan Krishi Vidyapeeth, Dapoli
District, Ratnagiri-415712, Maharashtra, Tel (02358)-
2282064.
• Directorate of Horticulture, Shivajinagar, Pune,
Maharashtra-560003
• Directorate of Horticulture, Lalbagh, Bangalore, Karnataka.
• Directorate of Horticulture, Hyderabad, Andhra Pradesh.
• 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 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:

8.6 Balance Sheet: The projected balance sheet of the model is

given at AnnexureIII. There would be three sources of financing the
project as below:

Source Rs. Thousand

Farmr’s share
75.00
Capital subsidy 30.00
Term loan 45.00
Total 150.00

8.7 Profit & Loss Account: The cash flow statement may be seen
in Annexure IV. Annexure V. 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 stabilize.
 Annexure-I

ESTIMATED PROJECT COST

(Rs. in thousand)
Sr. Total
Particulars Scale Unit Cost
No. Qty Cost
1 LAND & SITE DEVELOPMENT
LAND Acre 1
Cost of Development
Land Development
Levelling & Dressing Acre 4000 1 4.00
Fencing & Gates Per Rft. 35 846 29.60
Sub Total 33.60
2 BUILDING
Store / Pump House Sq Ft. 150 100 15.00
Labour Shed Sq Ft. 100 50 5.00
Sub Total 20.00
3 PLANT & MACHINERY
Irrigation system
Borewell Nos. 25000 1 25.00
SIP sets & Electrical Installation LS 20000 1 20.00
Drip Irrigation inc. Fertigation
LS
system 25000 1 25.00
Farm Equipment Machinery LS 5400 1 5.40
Sub Total 75.40
4 COST OF CULTIVATION
Land Preparation / Planting 4.20
Planting Material 2.00
Input Cost 7.00
Power Cost 3.60
Other Farm Operations 7.20
Sub Total 21.00
TOTAL 150.00
 Annexure-II

COST OF PRODUCTION & PROFITABILITY

(Rs. in thousand)
Particulars Year-I Year-II Year-III Year-IV Year-V to XV
Income 50.00 60.00 70.00 70.00 70.00
Sales 50.00 60.00 70.00 70.00 70.00
Cost 24.50 25.60 26.70 26.70 26.70
Fixed 24.50 25.60 26.70 26.70 26.70
Manure/fertilizers/chemicals 10.00 10.00 10.00 10.00 10.00
Direct Labour cost 4.20 4.20 4.20 4.20 4.20
Other cost 3.60 3.60 3.60 3.60 3.60
Harvesting & transportation cost 6.20 7.30 8.40 8.40 8.40
General expenses 0.50 0.50 0.50 0.50 0.50
Gross profit 25.50 34.40 43.30 43.30 43.30
Depreciation 6.80 6.80 6.80 6.80 6.80
Interest -term loan 5.40 5.40 5.20 4.20 3.20
Pre-operative Exp. W/O - - - - -
Profit before tax 13.30 22.20 31.30 32.30 33.30
Taxes - - - - -
Profit After Taxes 13.30 22.20 31.30 32.30 33.30
Retained Profit 13.30 22.20 31.30 32.30 33.30
Net cash Accrual 20.10 29.00 38.10 39.10 40.10
 Annexure-III

PROJECTED BALANCE SHEET

(Rs. in thousands)
Particulars Year 0 Year I Year II Year III Year IV
LIABILITIES
Farmer's Share 75.00 75.00 75.00 75.00 75.00
Capital Subsidy 30.00 30.00 30.00 30.00 30.00
Reserves & Surpluses - 13.30 35.50 66.80 99.10
Term Loan 45.00 45.00 36.80 28.60 20.50
Total 150.00 163.30 177.30 200.40 224.50

ASSETS
Fixed Assets 150.00 150.00 143.20 136.40 129.60
Less Depreciation - 6.80 6.80 6.80 6.80
Net Block 150.00 143.20 136.40 129.60 122.70
Cash & Bank Balance - 20.10 40.90 70.90 101.80
Total 150.00 163.30 177.30 200.40 224.50
 Annexure-IV

CASH FLOW STATEMENT

(Rs. in thousand)
PARTICULARS Year 0 Year I Year II Year III Year IV
SOURCES OF FUNDS
Increase in Farmer's Share 75.00 - - - -
Net Profit - 13.28 22.18 31.32 32.31
Increase in Subsidy 30.00 - - - -
Depreciation - 6.82 6.82 6.82 6.82
Increase in Term Loan 45.00 - - - -
Total 150.00 20.10 29.00 38.15 39.13

DEPLOYMENT
Increase in Fixed Assets 150.00 - - - -
Decrease in Term Loan - - 8.18 8.18 8.18
Total 150.00 - 8.19 8.19 8.19

Opening Balance - - 20.10 40.90 70.85

Surplus/Deficit - 20.10 20.81 29.95 30.94
Closing Balance - 20.10 40.90 70.85 101.79
 Annexure-V

PROJECTED PROFIT AND LOSS ACCOUNT

(Rs. in thousands)

Particulars Year I Year II Year III Year IV Year V

Sales Realisation 50.00 60.00 70.00 70.00 70.00
Total Costs 24.50 25.60 26.70 26.70 26.70
Gross Profit 25.50 34.40 43.30 43.30 43.30
Depreciation 6.80 6.80 6.80 6.80 6.80
Pre-Operative Expenses W/O - - - - -
Interest on Term Loan 5.40 5.40 5.20 4.20 3.20
Profit before Tax 13.30 22.20 31.30 32.30 33.30
Taxes - - - - -
Profit after Tax 13.30 22.20 31.30 32.30 33.30
Retained Profit 13.30 22.20 31.30 32.30 33.30
Net Cash Accruals 20.10 29.00 38.10 39.10 40.10

PROFIT & LOSS ACCOUNT

Opening Balance 0.00 13.30 35.50 66.80 99.10

Closing Balance 13.30 35.50 66.80 99.10 132.40