An economic analysis of mango cultivation in Yamunanagar district of Haryana.
Sharma D. K., Singh V. K., Khatkar R. K., Sushil Sharma
Author Affiliation: Department of Agricultural Economics, CCS Haryana Agricultural University, Hisar - 125 004, India.
Haryana Agricultural University Journal of Research 36 : 105-111
Abstract : A study was conducted to examine the economic feasibility of mango cultivation by estimating the initial cost of establishing a mango orchard, average cost and returns of production, amortization capacity of the orchard and profitability of mango cultivation vis-a-vis other annual crops. The data were gathered by interviewing 60 mango growers from six villages in Yamunanagar District, Haryana, India, during 2002-03. The budgeting technique and various economic tools were used to estimate the production cost and economic feasibility of the activity. Results showed that mango growers incurred losses during the first four years of establishment of mango orchards. The profit earned increased from the fifth year (Rs. 3873) to the tenth year (Rs. 47?477) and thereafter became almost stagnant throughout the expected life of 30 years. The net present value per hectare was calculated at 12% discount rate for Rs. 110?165 during entire life of the orchard. Based on cost-benefit ratio of 1:3 and internal rate of return of 25%, it is concluded that mango cultivation in the district is profitable.