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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.

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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. 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

‘Mahamango’, a co-operative society was established in 1991 with the support of Maharashtra State Agricultural & Marketing Board (Pune). This was mainly formed t

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 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
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.

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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

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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, monocroto

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.

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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:

(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. No. Component Proposed
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

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(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.

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