Compiled by the ASFIC team

+91 9358525643

MANGO
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.
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.
BACKGROUND
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.
Area & Production
India ranks first among worlds mango producing countries accounting for about 50% of the
worlds mango production. Other major mango producing countries include China,
Thailand, Mexico, Pakistan, Philippines, Indonesia, Brazil, Nigeria and Egypt. Indias share
is around 52% of world production i.e. 12 million tonnes as against worlds 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.
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.
MARKET ANALYSIS AND STRATEGY
Demand and Supply patterns
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 Americas 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.

International Markets for Indian Mango

Asian producers find it easier to expand sales to the European Union. Europes 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 lions 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 precooling, 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.
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
Tonnes)

(Rs. in
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

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). Europes 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.
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.
PRODUCTION TECHNOLOGY
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.
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
Andhra Pradesh
Chhattisgarh
Gujarat
Haryana
Jammu & Kashmir
Jharkhand
Karnataka
Kerala
Madhya Pradesh
Maharashtra
Orissa

Growing belts
Krishna, East and West Godavari, Vishakhapatnam,
Srikakulam, Chittoor, Adilabad, Khamman, Vijaynagar
Jabalpur, Raipur, Bastar
Bhavnagar, Surat, Valsad, Junagarh, Mehsana, Khera
Karnal, Kurushetra
Jammu, Kathwa, Udhampur
Ranchi, Sindega, Gumla, Hazaribagh, Dumka, Sahibganj,
Godda.
Kolar, Bangalore, Tumkur, Kagu
Kannur, Palakkad, Trissur, Malappuram
Rewa, Satna, Durg, Bilaspur, Bastar, Ramnandgaon,
Rajgari, Jabalpur, Katni, Balagha
Ratnagiri, Sindhudurg, Raigarh
Sonepur, Bolangir, Gajapati, Koraput, Rayagada, Gunpur,
Malkanpuri, Dhenkanal, Ganjam, Puri

Punjab
Tamil Nadu
Uttaranchal
Uttar Pradesh
West Bengal

Gurdaspur, Hoshiarpur, Ropar

Dharmapuri, Vellore, Tiruvallur, Theni, Madurai
Almora, Nainital, Dehradun, Bageshwar, UdhamSingh
Nagar, Haridwar
Saharanpur, Bulandshahar, Lucknow, Faizabad, Varanasi
Malda, Murshidabad, Nadia

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

Mid-season

Late

Bombai, Bombay Green , Himsagar, Kesar,

Suvernarekha
Alphonso, Mankurad, Bangalora, Vanraj, Banganapalli,
Dashehari, Langra, Kishen Bhog, Zardalu, Mankurad
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
Andhra Pradesh
Bihar

Varieties grown
- Allumpur Baneshan, Banganapalli, Bangalora, Cherukurasam,
Himayuddin, Suvernarekha, Neelum, Totapuri
- Bathua, Bombai, Himsagar, Kishen Bhog, Sukul, Gulab Khas,
Zardalu, Langra, Chausa, Dashehari, Fazli

Goa
Gujarat
Haryana
Himachal
Pradesh
Jharkhand

- Fernandin, Mankurad
- Alphonso, Kesar, Rajapuri, Vanraj, Jamadar, Totapuri,
Neelum, Dashehari, Langra
- Dashehari, Langra, Sarauli, Chausa, Fazli
- Chausa, Dashehari, Langra

- 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
Planting
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
epicotyls grafting etc.
Planting Season

Planting is usually done in the month of July-August in rainfed areas and during FebruaryMarch in irrigated areas. In case of heavy rainfall zones, planting is taken up at the end of
rainy season.

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.
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.
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 years 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. Micronutrients may be applied as per the requirement in the form of foliar sprays.
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
years)/Growth stage
1
2-5
5-8/ fruit set to maturity
Full bearing stage

Irrigation schedule
Irrigated at an interval of 2-3 days during dry season.
Irrigation interval- 4-5 days .
Irrigated after every 10-15 days
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.
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.
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, ladys 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.
Crop Management
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.
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.
Plant Protection Measures
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.
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.

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.
POST HARVEST MANAGEMENT
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 5220 C for 5 minutes. within 4-8 days under ambient conditions. Mature fruits are
ripened with lower doses of ethrel for uniform colour development.
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.
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.
Transportation
Road transport by trucks is the most popular mode of transport due to easy approach from
orchards to the market.
Marketing
Marketing of the produce is mainly controlled by intermediaries like wholesalers and
commission agents.
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
ECONOMICS OF A ONE ACRE MODEL

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:
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
Sl.
No.
1.

Component
Cultivation Expenses
(i) Cost of planting material
(ii) Manures & fertilizers

(Amount in Rs.)
Proposed
Expenditure
2,000
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
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.
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.
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.
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:
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

Farmers share
Capital subsidy
Term loan
Total

75.00
30.00
45.00
150.00

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.
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.
Depreciation calculations are given in Annexure VIII.
Project Viability:
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.
The Debt Service coverage ratio calculations are presented in Annexure X. The average
DSCR works out to 3.83.
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).
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.