A study on capital productivity analysis of mango cultivation with special reference to Madurai district

Capital Productivity in growing mango orchard is analysed in different ways compared to annual crops. The present study has been designed to investigate cost of production and returns per acre over the life time of mango trees. A sample of 300 mango growing farmers was taken from various villages of Madurai District of Tamil Nadu. The objective was to work out Pay Back Period, Benefit Cost Ratio and Net Present Worth of growing mango orchard. The Pay Back Period was computed on the basis of Undiscounted Cumulative Value for the investment made in mango cultivation over a period of 3.54 years, indicating that the growers can recover the initial investment made in mango orchard in 3.54 years. The cut off year at 15 per cent cost of capital is 6.67 years and the calculated Pay Back Period is less than that of the cut off year. Hence it may be calculated that the investment in mango cultivation is a viable one. Net Present Worth, at Rs. 32238.62 per acre, was estimated for the sampled respondents. This indicates that mango cultivation fetches higher returns whereas Benefit Cost Ratio was reasonably high at 1.45, implying that investing one rupee in mango cultivation would return Rs. 1.45. These results indicate that investing in mango orchard would bring huge returns to the farmers on one hand and for the country in the form of foreign earnings on the other hand.