How much profit does a mango farm make?
India is one of the largest producers of mangoes. We are not talking about just any mango here, but the best quality mangoes. There are 100’s of varieties of mangoes in india. The climatic conditions and the soil in India make Mango cultivation possible. The quality and the varieties of mangoes in india cannot be matched by any other country,no matter what kind of technology is used today.
Farmers in India focus on some key varieties and these are all based on the market, weather conditions, location and soil. For instance, in the south, the mangoes are cultivated early. The flowering starts by end of november and fruiting starts as early as march. The varieties include alphonso, banganapalli, Sinduri, ImamPasand, Raspuri, Malgoba and Kalapadi among others. These varieties are very common in South india and some of these varieties are not grown in the north. In the northern part of India, Kesar, Paheri, Chaunsa, Gulab Khas , Badam and vanraj are more common. Though some of these varieties can be planted in the south and some of the south varieties can be grown in the north, they are not grown due to market requirements. Some varieties are very popular all over india like the alphonso which are always expensive and are mostly exported.
The profit a farmer makes depends on how fast he is able to pick mangoes and deliver it to the market. During peak season, mangoes cost Rs.20 per Kilo and may go upward to 40. But during off season, mangoes are expensive and can go up to Rs 250 Per kilo. Farmers who can deliver the produce to the market earlier will reap in the most benefit.
South India is one of the largest producers of mangoes , contributing at least 40,000,00 Tonnes of mangoes in 2010 and is currently far more than that. It stood as the key producer of mangoes for a long time and still is, with Uttar pradesh Close behind. The Advantage of all the southern states is that the mangoes are cultivated early and they are sold in markets in north india at a higher price. The price is affordable even with the high transportation costs and most farmers benefit from the first few pickings.
Late pickings are not as profitable and these fruits are often sold in the local market. A moderate variety of mango like the sinduri, are often sent to north india for a good price and yields approximately 10 tonnes per acre, Half of which is harvested before the season peaks in the north. A farmer can expect a profit of 1 lakh rupees per acre. This may go up or down depending on the variety. Varieties like Alphonso are often sold at a higher price , but the farmer only gets roughly one lakh per acre because the yield in an alphonso tree is considerably lesser than some of the other varieties. Also, many vendors discard mangoes which are not to the desired quality, especially when it comes to the alphonso.
Color, Size and texture matters for alphonso mangoes and most mangoes which are purchased for export.
Some farmers give the entire property for lease and traders purchase these trees for a whole year. The maintenance, fertigation and irrigation is the responsibility of the trader from that point. This reduces the cost for the farmers and most farmers require that the trader pays half upfront and the remaining half before the first picking. This is efficient for many farmers who have problems maintaining their land and cuts cost and effort on labour. The traders usually get a good deal too, because the lease on the property allows them to pick early and get a good price on their picking. Lease price depends on the age of the tree, number of trees per acre and the condition and quality of the tree. For a 1 acre alphonso tree plantation the cost could go from 1 lakh to 1.8 lakh if the tree is older than 8 years.
How is lease price determined?
- Age of the plant and the height of the plant : The Mango plant should be at least 5 years old for moderate picking and 8 years to 20 years for a good picking. A tree which is older than 20 years is often too big and labour intensive for the traders. They will cut down the cost because they have to add it up to the labour cost. Trees between 8 years and 10 years cost Rs.10000 per tree. Prices will vary depending on the variety of the mango and also the location.
- Variety : While mango trees with prime quality will cost more than the desi varieties, you can expect a decent price for some of the desi varieties. Kalapadi, for instance, is an indian variety and not a hybrid. The yield is nominal and the price is quite high. You can expect a good price for this variety but the moovandan is a variety which fruits twice a year and the price is half of what you get for most varieties in the season. This goes towards the quality of the mango and what its used for. Pickle mangoes usually go for a very cheap price, no matter what the season.
- Location + Variety: Some parts of kerala and tamilnadu are extremely suitable for mango cultivation. The flowering starts early and the fruit picking begins in late march. This is the peak time for mango and the prices are sky high. Farmers in these locations are often given a higher price than farmers elsewhere and clearly, some of these farmers see a higher profit margin
To sum it all up, You could say that a farmer could expect around 1 Lakh rupees per year from one acre of mango plantation if the variety is popular in the market.