5668 Advances 5668-5675,
Advances in Life Sciences 5(15), Print : ISSN 2278-3849, in Life Sciences
Value Chain Analysis of Mango - A Study in Karnataka
R. RANGEGOWDA*1, AMRATRAJ I PATIL1 AND S. LOKESH2
1
Department of Agricultural Economics, UAS, Bengaluru, GKVK-560065,Karnataka. 2Department
of Agricultural Economics, UAS, Dharwad, College of Agriculture, Bijapur-586101 Karnataka.
*email:rangegowda33@yahoo.com
ABSTRACT
The present study was conductedin Srinivaspur taluk and
Bengaluru city of Karnataka with the major objective of
analysing the mango value chain. The primary data for
the study was collected from 162 respondents which
included farmers (30), traders (10), wholesalers (10),
retailers (10), processors (2) and consumers (100). The
secondarydataregardingarea, productionandproductivity
ofmangowascollectedfrom National Horticultural Board
database. The analytical tools employed included value
chain analysis, Compound Growth Rate Conjointanalysis
and descriptive statistics. Only two varieties of mangoes
(alphonso and totapuri) are used for pulp and juice
extraction because of aroma, TSS content and high per
cent of pulp content. The degree of value addition is more
during pulp extraction (105.70 %) and processing of
mangointojuice (424.43 %). Outof the different attributes
of value added product of mango, i.e., mango juice,
consumers preferred price as most important attribute
followedby quantity, brandandtaste. Ninetypercent of the
consumers purchased both fresh as well as processed
mangoand they mainly purchased fromlocal retail shops.
Majority (65.59 %) of them purchased branded mango
juice andtheymainlyconsumedMaaza andSlice brands
of mango juice. Since there is scope for value addition and
demandforvalue addedproductsof mango, the Government
may take up initiatives for strengthening of the mango
value chain by establishing processing units in the
production belts as well as provide the required
institutional framework for domestic and exportpromotion
ofvalue added products ofmango.
Keywords Mango Production, Value chain analysis
and Conjoint analysis
Mango, Mangifera indica L., is one of the ancient
fruits of India. It belongs to family of Anacardiaceae. It
is a native of Indio- Burma region. In Indian sub-
continent, it is being cultivated for over 4,000 years.
The name mango is derived from the South Indian
Malayalam word Manga, which the Portuguese
adopted as Mango. Among the tropical fruits of the
World, mango is the most popular and it has been rightly
described as King of Fruits. Mango is the national
fruit of India. It is rich in vitamin A and C.
20165(15), 2016
The fruit is cultivated in the largest area i.e.
2296.80thousand ha and the production is around 15.18
million tons, contributing 40.48% of the total world
production of mango. The main mango producing states
in India are Uttar Pradesh, Andhra Pradesh, Karnataka,
Bihar, Gujarat and Tamil Nadu. Mango is the leading
exportable fruit from India after citrus. Among
internationally traded tropical fruits, mango ranks first
both in terms of quantity and value. Total export of
mangoes from India is 63.44 thousand tons, valuing
Rs. 209.74 crores during 2011-12. India exports mango
to over 40 countries worldwide. The major importing
countries of Indias Mangoes during the period of 2011-
12 were UAE (51.18%), Bangladesh (19.35%), UK
(7.83%), Saudi Arabia (5.58%), Nepal (3.2), and Kuwait
(2.57%) respectively.
Karnataka is one of the important states growing
different varieties of mango. Kolar is the major mango
growing district in Karnataka and the agro-climatic
condition in the region is best suited for production of
mango. In Karnataka, mango is grown on commercial
scale and occupies about 1,54,000 hectares with
production of 26,94,000 tonnes. There is lot of demand
for fresh as well as processed mango both in domestic
and foreign markets. As mango is a seasonal fruit, the
demand for fresh fruit will be in that particular season
but for the processed or value added products of mango,
there will be demand round the year.
Value Chain
Value Chain Analysis is one way of identifying
which activities are best undertaken by a business and
which are best provided by others. It describes the
activities that take place in a business and relates them
to an analysis of the competitive strength of the
business.
The value chain analysis for mango will help in
identifying the actors involved in the value chain. Value
chain analysis basically uses a participant worksheet
which includes production, assembling, processing,
wholesaling, retailing and consumption. These elements
help to organize key information about the role of each
participant in the value chain. It also identifies the
potential opportunities for upgrading the value chain and
 RANGEGOWDA et al., Value Chain Analysis of Mango - A Study in Karnataka 5669

Table 1. Composition of sample respondents for value chain mapping.

Sl. District No. of No. of No. of No. of No. of No. of Total

No. farmers traders wholesalers retailers processors consumers
1 Sirinivaspur 30 10 0 0 1 0 41
2 Bangalore 0 0 10 10 1 100 121
Total 30 10 10 10 2 100 162

to open up those opportunities. It also suggests strategies Period of study

to improve the marketing of mango.
Objectives
1. Area, production and productivity of mango in
India.
2. To analyze the degree of value addition at each
stage of mango value chain.
3. To analyze the consumer preference for value
added products of mango.
MATERIALS AND METHODS
Nature and source of data
The study was based on both primary as well as
secondary data. Primary data were obtained from the
farmers, traders, wholesalers, retailers, processors and
consumers through personal interview for evaluating
the objectives of the study. The primary information
regarding value chain aspects like degree of value
addition and the consumer preference for value added
products of mango etc. were collected from other
players in the mango marketing channel. The necessary
secondary information regarding area and production
of mango was taken or drawn from National
Horticulture Board database.
The reference year of the study was 2012-13 and
the collection of data was carried out during the period
March and April 2013.
Analytical tools and techniques
To fulfill the specific objectives of the study, based
on the nature and extent of data, the following analytical
tools and techniques were adopted.
1. Tabular presentation.
2. Compound Growth Rate.
3. Value chain analysis.
4. Conjoint analysis.
Value chain analysis
A Value Chain is a chain of activities for a firm
operating in a specific industry. The business unit is the
appropriate level for construction of a value chain, not
the divisional level or corporate level. Products pass
through all activities of the chain in order and at each
activity the product gains some value. The chain of
activities gives the products more added value than the
sum of the independent activities value. It is important
not to mix the concept of the value chain with the costs
occurring throughout the activities. Value chain analysis
is a powerful tool to identify the key activities within

Table 2. Area, production and productivity of Mangoes in India during 2001-02 and 2010-11

Year Area(in 000HA) Production(in 000MT) Productivity in MT/HA)

2001-02 1575.8 10020.2 6.4
2002-03 1623.4 12733.2 7.8
2003-04 1906.7 11490 6
2004-05 1970.4 11829.7 6
2005-06 2080.7 12663.1 6.1
2006-07 2153.9 13734 6.4
2007-08 2201.4 13996.8 6.4
2008-09 2309 12750 5.5
2009-10 2312.3 15026.8 6.5
2010-11 2296.9 15188.6 6.6
CGR 1.06 3.7 -0.7

Source: National Horticulture Database-2011

5670 Advances in Life Sciences 5(15), 2016

Table 3. Triennium Area, production and productivity of Mango in major states in India by the end of
2010-11
State Area Production Productivity
Uttar Pradesh 271.62 2525.72 13.11
Andhra Pradesh 456.07 3314.58 7.37
Karnataka 152.22 1585.72 10.37
Bihar 145.70 1220.20 8.38
Gujarat 122.44 689.29 5.55
Tamil Nadu 143.19 760.48 5.29
Orissa 177.32 556.40 3.12
West Bengal 87.88 582.36 6.62
Jharkhand 28.62 257.92 10.24
Kerala 67.55 399.81 5.93
Source: Indian Horticulture Database-2012
Maharashtra 189.30 546.93 1.17
Others 463.80 827.11 1.98
Total 2306.03 14321.61 6.21

the firm which form the value chain for that organization It can be formulated as:
and have the potential of a sustainable competitive
advantage for a company. n mi

Conjoint Analysis V X ij ij
Conjoint measurement seeks to quantify and i1 j 1
predict the consumers overall judgment (e.g. quality
evaluation) on the basis of these underlying products Where,
attributes. It starts with the consumers overall judgment Y- The consumers overall evaluation of the
about a set of product alternatives (i.e. combinations of product alternative. Vij- is the part-worth associated with
attribute levels) and breaks the overall judgments down level j (j=1,2..,mi) of attribute I (i=1,2,,n),
into the contribution of each attribute levels. The Xij is a dummy variable representing the presence
contribution of the overall judgment is called part- (=1) or absence (=0) of the jth level of the ith attribute.
worths.
A conjoint measurement produces part worth

Table 4. Major countries importing mango from India

2007-2008 2008-2009 2009-2010

Sl.No. Country Quantity* Value* Quantity* Value* Quantity* Value*
1. UAE 224.69 63.2 245.7 78.1 256.08 103.82
2. Bangladesh 170.63 15.9 451.04 40.8 335.49 32.95
3. United kingdom 25.75 19.8 25.27 14 29.58 174.6
4. Saudi Arabia 14.88 45 21.41 83.6 31.47 134.5
5. Kuwait 4.6 30.6 5.46 39.8 8.04 52
6. Qatar 0.77 33.33 2.65 11.76 6.59 51.2
7. Bahrain 4.74 17.56 11.54 32.45 12.38 40.2
8. Nepal 75.5 63.67 47.65 37.43 40.58 37.8
9. United states 1.42 19.53 2.02 29.23 1.75 25.6

*Note: Quantity in 000 tonnes and values in crores

Source: www.apeda.com
 RANGEGOWDA et al., Value Chain Analysis of Mango - A Study in Karnataka 5671

Table 5. Degree of value addition in mango

A. For Fresh mango (per tonne)
SL Items Farmer Trader Wholesaler Retailer Consumer
1 Sale price (Rs) 20000 30000 37000 43000 -
2 Purchase price (Rs) - 20000 30000 37000 43000
3 Price difference (Rs) - 10000 7000 6000 -
4 Cost (Rs) - 2500 2000 1000 -
5 Margin (Rs) - 7500 5000 5000 -
Degree of value addition (%) - 37 16.7 13.5 -

B. For processed mango (per tonne)

SL Items Farmer Trader Processor Consumer

Pulp Juice
1 Sale price (Rs) 22000 26000 110000 75000 -
2 Purchase price (Rs) - 20000 52000 13200 75000
3 Price difference (Rs) - 6000 58000 61000 -
4 Cost (Rs) - 2000 3000 5000 -
5 Margin (Rs) - 4000 55000 56000 -
Degree of value addition (%) - 18 105.7 424.4 -

functions of the attributes (i.e. the set of values Vij for
the levels of each attribute i), which are directly
comparable to each other.
Ordinary least squares (OLS) regression analysis
is the most commonly used procedure to estimate the
part worths. Research has shown that the regression
analysis gives very good results, even if the overall
evaluations consist of rank order data. The fit of the
model to the data is usually assessed in terms of
spearmans rank correlation coefficient between input
and estimated values of the dependent variable.
Sampling of chain actors
The farmers, traders, processors, wholesalers,
retailers and consumers formed the focus of this
research. Actors involved in the marketing of the
product were also intensively interviewed and
interacted. In total, 162 actors were interviewed and
the details of the same have been presented in Table-1.
RESULTS AND DISCUSSION
Area, production and productivity of mango in
India
Table 2 represents the All India area, production
and productivity of mangoes in India since 2001-2002
through 2010-11. The area under mango has registered
a significant positive compound annual growth rate of
1.06 per cent during 2001-02 to 2010-11, while its
production registered growth rate of 3.7 per cent during
the same period. But, the matter of concern is its
declining productivity, which has shown a decline in
yields by 0.7 per cent per annum.
An analysis of data from the major mango growing
states for the previous three years triennium ending
(2008-09 to 2010-11) with regard to production in table-
3 has revealed that an average production was about
2,306 thousand ha, in which the major share was from
Andhra Pradesh (20 %), followed by Uttar Pradesh (12
%), Maharashtra 8 %), Odisha (8 %), Bihar (7 %) and
Karnataka (6 %). The analysis of production trends
showed that the total production by the states was about
14,322 thousand tonnes, in which the major share was
from Andhra Pradesh (3315 Th Tonnes) followed by
Uttar Pradesh (2526 Th Tonnes), Karnataka (1586 Th
Tonnes) and Bihar (1220 Th Tonnes). The average
productivity of mango in these states was about 6.21 t/
ha with highest yield coming from Uttar Pradesh (13.11
t/ha), followed by Karnataka (10.37 t/ha), Jharakhand
(10.24 t/ha), Bihar (8.38 t/ha) and Andhra Pradesh (7.37
t/ha). These figures help us to identify potential areas
and formulate policies for promoting production and
exports.
Degree of value addition for mango
In the present study, importance was given to
degree of value addition for mango hence degree of
value addition for both fresh as well as processed mango
was worked out and presented in Table-5. Here, the
degree of value addition means the extent of value added
or increase in the value of the mango and it is expressed
5672 Advances in Life Sciences 5(15), 2016

Table 6. Value Chain Analysis of Fresh Mango (Rs / kg)

SL Particulars Amount (in Rs)
I FARMERS / GROWERS
1. Production cost
a)Land rent 1.50
b)Establishment cost 2.00
c)Land preparation 2.00
d)Manures & fertilisers 3.00
e)Plant protection 3.00
f)Harvesting 1.50
TOTAL PRODUCTION COSTS 13.00
2. Post production cost -
Total farm level costs 13.00
Losses 1.00
Margin 6.00
PRODUCERS PRICE 20.00
II TRADERS
1. Assembling costs
a) Grading 0.75
b) Transportation cost including loading / unloading and other miscellaneous costs 1.25
c) Purchasing price 20.00
TOTAL ASSEMBLING COSTS 22.00
Losses 1.00
Margin 7.00
TRADERS PRICE 30.00
III WHOLESALERS
a) Storage and other miscellaneous costs 0.25
b) Ripening 0.75
c) Transportation 0.25
d) Purchase price 30.00
TOTAL WHOLESALE LEVEL COSTS 31.25
Losses 1.25
Margin 4.50
WHOLESALERS PRICE 37.00
IV RETAILERS
1. Retailing cost
a) Space rent and other miscellaneous costs 1.00
b) Ripening 0.50
c) Purchase price 37.00
TOTAL RETAIL LEVEL COSTS 38.50
Losses 1.50
Margin 3.00
RETAILERS PRICE 43.00

in percentage. As the mango moves in the chain and
changes the actors hands, the value of mango as well
as its form changes. The degree of value addition varied
at each stage or for each actor in the value chain. It
need not necessarily be value addition, infact, there is
scope for value deletion also.
The degree of value addition is calculated by taking
price difference, i.e., sale prices of the commodity into
consideration. The margin is obtained by subtracting
the cost from the price difference. The margin that is
obtained is further divided by the purchase price of the
commodity. The value got is multiplied with 100, which
 RANGEGOWDA et al., Value Chain Analysis of Mango - A Study in Karnataka
Table 7. Consumers preference for specific attributes of processed mango products
Sl. Attributes Levels
Maaza
Slice
1 Brand
Frooti
Unbranded fresh mango juice
Best
2 Taste Better
Good
Low
3 Price Medium
High
< 200 ml
4 Quantity 200 -500 ml
> 500 ml
gives the degree of value addition in percentage.
A. Degree of value addition for fresh mango
The value addition for fresh mango begins from
traders stage of the chain. The degree of value addition
at the traders stage was 37 per cent which was
followed by 16.70 per cent at wholesalers stage and
13.50 per cent at retailers stage. (Table-5 A)
B. Degree of value addition for processed
mango
As in case of fresh mango value chain, even for
the processed mango, the degree of value addition starts
from traders stage. The degree of value addition at
traders stage was 18 per cent which was followed by
105.70 per cent at pulp processing stage and 424.43
per cent at juice processing stage.(Table-5 B)
Analysis of value chain
Table-6 presents the costs of mango and loss
incurred, margin and price gained by the mango as it
moves along the chain and it also indicates the share
that each actor gets in handling the mango. This analysis
was done based on the data provided by the farmers,
traders, processors, wholesalers and retailers at the time
of interviews. From the table, it can be observed that
the producers price turned out to be Rs. 20 per kg
which includes production cost like land rent, land
preparation, manures and fertilizers, plant protection
chemicals, harvesting cost, etc. The losses that are
incurred at the farm level were about Rs. 1 per kg and
the margin or profit that the farmers realized was about
Rs. 6 per kg. The traders bought the produce from
farmers after the harvest and they incurred assembling
cost and marketing costs like grading, transportation,
loading and unloading which was Rs. 22 per kg. The
traders also incurred losses to the tune of Rs.1 per kg
5673
Utility Estimate Relative importance (%)
0.727
0.727
25.58
-0.704
-0.75
-0.016
0.096 14.48
0.112
1.976
-0.225 30.89
-1.751
-1.655
0.251 29.04
1.403
and realized margin of Rs. 7 per kg. The costs at
wholesale level were Rs. 31.25 and they incurred losses
of Rs. 1.25 per kg and realized margin of Rs. 4.50 per
kg. The cost incurred by the retailer was Rs. 38.50 per
kg.
Consumer preference
In the present study, conjoint analysis was used
to assess the consumer preference for value added
products of mango, i.e., juice. This technique focused
on the evaluation of juice which was defined in terms
of specific levels of attributes. Consumers preference
for specific attributes of major processed mango
products is presented in (Table-7).
The part-worth of each attribute is calculated by
regression analysis using SPSS software to translate
the respondents answers into relative importance values
or utilities. The most important attribute considered by
the consumers was price. The relative importance
attached to the price was 30.89 per cent. Among low,
medium and high prices, low price was the most
preferred which was reflected by the utility value
attached to it, i.e., 1.976. Medium price was next in the
order with a utility value of -0.225. It was found that
the high price was the least preferred among all
having the value of -1.751.
The second important attribute was quantity. The
average importance attached to it was 29.04 per cent.
The quantity of more than 500 ml was most preferred
by the consumers with the utility value of 1.403,
followed by the quantity of 200-500 ml and less than
200 ml with the utility values of 0.251 and -1.655
respectively.
The next important attribute was brand. Its
importance averaged at 25.58 per cent. Consumers
preferred and they have ranked Maaza and Slice equally
5674 Advances in Life Sciences 5(15), 2016

Table 8. Buying behaviour of sample consumers of fresh and processed mango

SL Consumers Number Per cent

1 Fresh mango consumers 97 97
A Place of purchase
a) Local retail shops 54 55.67
b) Street vendors 5 5.15
c) Organized retail shops 38 39.17
2 Processed mango consumers 93 93
A Type of processed mango product
i. Branded 61 65.59
ii. Unbranded 22 23.65
iii. Both 10 10.76
i. Branded mango products
a) Maaza 27 44.26
b) Slice 24 39.34
c) Frooti 10 16.39
ii. Unbranded mango products
a) Fresh mango juice 22 100
3 Consumers who consumed both 90 90

with utility values of 0.727 and 0.727 respectively which
was followed by Frooti with utility value of -0.704.
Least preference was given to unbranded fresh mango
juice with the utility value of -0.750.
The least important attribute was taste whose
relative importance is 14.48 per cent. Among the good,
important fruits of India and is popularly known as king
better and best taste available, good taste was the most
preferred which was reflected by the utility value of
0.112. Better taste was next in the order with a utility
value of 0.096 followed by best taste with utility value
of -0.016.
Buying behaviour of consumers towards fresh
and processed mango
and aroma recovery are preferred especially for exports.
The buying behaviour of the consumers were
analyzed and presented in Table-8 and it can observed
that 97 per cent of the consumers consumed fresh
mango, 93 per cent of the consumers bought processed
product, i.e., mango juice and 90 per cent consumed
both processed and fresh mango. Consumers purchased
fresh mango mainly (55.67 %) from local retail shops
followed by 39.17 per cent of them who purchased
from organized retail shops like Reliancefresh, Big
Bazaar, More, etc. and about five per cent purchased
from street vendors. With regard to purchase of mango
juice, it was found that 65.59 per cent of the consumers
purchased branded ones, 23.65 per cent purchased
unbranded mango juice and 10.76 per cent purchased
both branded as well as unbranded mango juice. Among
the branded mango juice consumers, 44.26 per cent of
them consumed Maaza brand, 39.34 per cent consumed
Slice brand and 16.39 per cent consumed Frooti brand.
In respect of unbranded mango juice, all the sample
consumers consumed fresh mango juice.
Policy implication
Mango (Mangifera indica Linn) is one of the
of fruits. Mango is cultivated in an area of 2296.80
thousand ha with a production of 15.18 million tons,
contributing 40.48 per cent of the world production.
Mango is a versatile fruit, used as a raw material to
process it into pulp, juice, concentrates, jams, chutneys,
pickles etc. In recent years, modern methods of
processing like aseptic packaging, vacuum concentration
Mango pulp is the largest single item amongst all the
processed fruits and vegetables which make up the
exported horticultural produce and it accounts for about
10 per cent of the total exports (NHB database, 2010).
Karnataka is one of the important states growing
different varieties of mango. Kolar is the major mango
growing district in Karnataka and the agro-climatic
condition in the region is best suited for production of
mango. In Karnataka, mango is grown on commercial
scale and occupies about 1, 54,000 hectares with
production of 26, 94,000 tonnes. There is lot of demand
for fresh as well as processed mango both in domestic
and foreign markets. As mango is a seasonal fruit, the
demand for fresh fruit will be in that particular season
but for the processed or value added products of mango,
there will be demand round the year. The degree of
 RANGEGOWDA et al., Value Chain Analysis of Mango - A Study in Karnataka
value addition is more during pulp extraction (105.70
%) and processing of mango into juice (424.43 %).
Out of the different attributes of value added product
of mango, i.e., mango juice, consumers preferred price
as most important attribute followed by quantity, brand
and taste. Ninety per cent of the consumers purchased
both fresh as well as processed mango and they mainly
purchased from local retail shops. Majority (65.59 %)
of them purchased branded mango juice and they mainly
consumed Maaza and Slice brands of mango juice.
Since there is scope for value addition and demand for
value added products of mango, the Government may
take up initiatives for strengthening of the mango value
chain by establishing processing units in the production
belts as well as provide the required institutional
framework for domestic and export promotion of value
added products of mango.
5675
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Anonymous.a 2013. Indian Horticulture Database-2012. Ministry
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Anonymous.b 2013. Post-harvest profile of Mango. Government
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& cooperation) Directorate of Marketing & Inspection
Anderson, Jamie, 2009. Expanding Globally with Local Vision:
Foreign Market Entryand the Value Chain. Journal of Business
Strategy, 30 (5): 32-39.
Daniel, J.N., Jaenicke, H., Ganry, J., Zeledon, Hoeschle, I. and
Kahane, R., 2009. Value chain analysis in relation to processing
and marketing of three underutilized fruits in India. Acta-
Horticulturae, 806 (2): 505-512.
Gooch, M., Laplain, D., Stiefelmeyer, K., Marenick, N. and Felfel,
A., 2009. Orchard Fruit and Vineyard Quality Assessment
throughout the Value Chain. www.vcmtools.ca Canadas
Independent Agrifood Think Tank.
Received on 26-06-2016 Accepted on 05-07-2016