Resource use efficiency in Alphonso mango production in Sindhudurg district (M.S.)

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1 28 Internat. J. agric. Sci. Vol.3 1 January 2007 : Resource use efficiency in Alphonso mango production in Sindhudurg district (M.) A. Wagale, J.M. Talathi*, V.G. Naik and D.B. Malave Department of Agril. Economics, Dr. B.Konkan Krishi Vidyapeeth, Dapoli, RATNAGIRI (M.) INDIA ABSTRACT The present study entitled An economic analysis of resource use efficiency in Alphonso mango production in Sindhudurg district was undertaken with a cross-sectional sample of forty farmers each from small (upto 1.00 ha), medium (1.01 to 2.00 ha) and large (above 2.00 ha) mango orchard categories were selected randomly from Vengurla and Deogad Tahsils. The average size of holding of sample mango growers was 2.54 ha. At overall level, the average size of mango growers using different inputs in mango production revealed that overall level, per cent mango growers were using manures, per cent were using fertilizers and per cent mango growers were using plant protection chemicals. The growth retardant users were negligible (12.5%). The per hectare quantity of manures used was quintals. The per hectare quantities of N, P 2 O 5 and K 2 O used were kg, kg and kg, respectively. At overall level, the plant protection chemicals i.e. carbamate (1.04 kg) was used on large scale, followed by copper based fungicide (1.02 lit), cyclodine compound (1.01 lit), sulphur based fungicides (0.91 lit) and organophosphate (0.62 lit). The per hectare cost of cultivation (Cost-C) Rs , Rs and Rs in small, medium and large size groups, respectively. At overall level, the per quintal cost of cultivation was Rs and that of production Rs , profit at Cost-A, Cost-B and Cost-C was Rs , Rs and Rs , respectively, leaving the net returns of Rs The net returns were Rs , Rs and Rs in small, medium and large size of orchard, respectively. The Cost : Benefit ratio at total cost of production was estimated to 1.26, 1.31 and 1.33 in small, medium and large size of orchard, respectively, while it was 1.30 at overall level. The coefficient of determination (R 2 ) indicated per cent variation in mango production. The applied t test indicated that constant return to scale have prevailed in mango production. The ratio of MVP/FC was more than unity in case of manures, phosphorus and potassium indicating the scope of expanding the use of these inputs. The expenditure on area, nitrogen, human labour and plant protection need to be curtailed. The constraint faced by mango growers, marketing of mango in the hands of commission agents (47.50%), lack of technical knowledge (42.50%) and non-availability of cold storage facility (29.17) were of high intensity. Key words : Input use, Cost Returns, Profitability, Resource Productivity and Allocative efficiency. INTRODUCTION Mango ( Mangifera indica L.) a member of Anacardiaceace, the fourth most important crop of the world and is the most important fruit crop in Asia, since a time immemorial (Mathew et al., 1993). Mango consists of more than one thousand varieties and is cultivated in the Indian sub-continent over 4000 years ago. In Maharashtra, the area under mango cultivation is hectares and production is M.T. In Maharashtra, the Konkan region is well known for mango production having an area of hectares and production of Konkan region is M.T. In Konkan region, the Sindhudurg district is popular for mango production having an area of about hectares and production is about M.T. (Srinivasan, 2005). Mango plantation is capital intensive and its gestation period is quite long. Low productivity is the major bottleneck in boosting its exports. The world mango productivity is about 14 to 16 tonnes/ha, while in India, it ranges from 8 to 10 tonnes/ha (Anonymous, 1993). However, the mango production in the Konkan region particularly Alphonso variety is very low which ranged about 2.5 tonnes/hectares (Goveker, 1995). This may be due to various factors like alternate bearing, application of inadequate fertilizer doses, lack of proper management of spraying schedule, difference in productivity, duration of flowering and fruiting and upto Internat. * Author J. for agric. corrospondence. Sci. (2007) 3 (1) some extent inequality of Alphonso fruits, across different farm size and locations. Further, there is no proper utilization of available resources that affect the yield and management of mango and its profitability. Therefore, to estimate practically, whether there are real differences across the different farm size, the present study was undertaken with following specific objectives. Objectives : i) To study inputs utilization across the farm size. ii) To study size productivity relationship in mango production. iii) To study resource use efficiency on different size of farms. iv) To analyze the constraint faced by mango growers in production process. MATERIALS AND METHODS Mango cultivation is mostly concentrated in Ratnagiri and Sindhudurg districts accounting for about per cent of the area under mango in the Konkan region. In view of this, Sindhudurg district was selected purposively for present investigation. From two Tahsils, i.e. Vengurla and Deogad, eight villages were selected randomly i.e. four villages from each tahasil. Then all mango growers were classified for selected villages in three different size groups

2 of mango orchards viz., 1) Less than 1.0 ha (small), 2) 1.01 to 2.0 ha (medium) and 3) above 2.01 ha (large). From each category, five farmers were selected randomly. Thus, final sample was consisted of 8 villages and 120 mango growers. The data pertained to the agriculture year The cost, returns and profitability in mango production was studied with the help of standard cost concepts and resource use efficiency in production was estimated through following Cobb-Douglas production form. bi Y = AX i e Where, Y = Mango yield per plant per year X i = Explanatory variable bi = Elasticity of coefficient of respective variables. e = Error term. X i = of bearing trees per farm. Age of orchards (yrs) Human labour (man days) Manures (quintal) Nitrogen (kg) Phosphorus (kg) Potassium (kg) Plant protection (Rs.) RESULTS AND DISCUSSION Size of Orchard : The details of orchards selected in three size of farms is given in Table 1. Table 1 : Information of sample mango orchards Particulars 29 The area of mango orchard increased from 0.62 ha in small group to 3.20 ha in large group. The number of trees per hectare varied from 97 in small group to 100 trees in large group. The proportion of bearing trees was the highest in large size group (87.38%), followed by in medium (78.84%) and small (71.08%) size groups. The average age of orchard was years at overall level. Input utilization : The per hectare size groupwise inputs used for mango orchard are given in Table 2. At the overall level, the quantity of of manures used was Among the groups, it was maximum (42.78) and in large and medium size group, while it was in medium size group. At the overall level, per hectare quantities of N, P 2 O 5 and K 2 O used were kg, kg and kg, respectively. The plant protection has assumed an important place in commercial mango cultivation. Plant protection chemicals were classified in groups on the basis of their chemical composition. At overall level carbamate (1.04 kg) was used on large scale followed by copper based fungicide (1.02 lit), Cyclodine compound (1.01 lit), sulphur based fungicide (0.91 lit) and organophosphate (0.67 lit). Most of the mango growers did not use growth promoters because of lack of knowledge and high cost. At overall level, the quantity of growth promoter viz. Cultar was found to be 0.07 lit, while it was 0.08 lit, 0.06 lit and 0.07 lit in small, medium and large size groups, respectively. Size groups of orchard 1. Average area per orchard (ha) Average age of orchard (yrs) Number of trees a) Per farm () i) Bearing trees ii) Non-bearing trees b) Per hectare () WAGALE ET AL. i) Bearing trees TOTAL (71.02) ii) Non-bearing trees (28.98) TOTAL (78.84) (21.16) (87.38) (12.62) (79.16) (20.84) (Figures in parentheses are percentages to total) At overall level, the average size of mango orchard was 1.79 ha, having trees. The per hectare number of trees was and there was no much variation among different size groups. Out of total number of trees, the proportion of bearing and non-bearing trees was per cent and per cent, respectively. Cost of production : Cost of production includes the cost of cultivation plus marketing cost. Item wise per hectare cost of production for different groups of mango orchards is presented in Table 3. Among the different categories of costs, out of total

3 30 RESOURCE USE EFFICIENCY IN ALPHONSO MANGO PRODUCTION Table 2 : Size groupwise inputs used per hectare of mango orchard. Inputs Size group of orchards 1. Manures (q) Fertilizers (kg) i) N ii) P 2 O iii) K 2 O Plant protection chemicals i) Organo phosphates (lit.) ii) Carbamate (kg) iii) Cyclodine compound (lit.) iv) Sulphur based fungicide (lit.) v) Copper based fungicide (lit.) Growth promoters cultar (lit.) cost of production cost-a was per cent, cost-b increased to per cent and subsequently at cost-c level, it was per cent, while the remaining share of cost was per cent was utilized to employ marketing expenses as the cost of marketing of mango is quite expensive. On the basis of per hectare total cost of cultivation and cost of production, the per quintal cost was worked out. At overall level, the per quintal cost of cultivation was Rs and that of production Rs The per quintal cost of cultivation was varied from Rs in large size group to Rs in small size group. The per quintal cost of cultivation was minimum (Rs ) in large size orchard due to higher productivity. The per quintal cost of production was minimum (Rs ) in large size orchard, Rs in medium and Rs in small size orchards. Profitability of orchard : The per hectare profitability of mango orchard was worked out by deducting different costs viz., Cost A, Cost B, Cost C and Total Cost of production from the per hectare gross returns. From the Table 3, it is observed that at the overall level, profit at cost A, cost B and cost C was Rs , Rs and Rs , respectively. At the overall level, the net returns at cost of production were Rs , while it was Rs in small size orchards Rs in medium orchards and Rs in large orchards. The cost-benefit ratio at total cost of production was found to be 1.26 in small orchard, 1.31 in medium orchard and 1.33 in large orchard, whereas, it was 1.30 at overall level. The cost : benefit ratio was more than unity indicating that mango production is profitable venture. Considering topography in the study area, agro-climatic situation, even the cropping patterns of the sample farms were dominated by perennial crop. The mango orchards income was dominant in the farming system. This encourages even farmers to bring more area under mango production. Resource use efficiency : The resource use efficiency in mango production was studied with the help of Cobb-Douglas production function for different size group of farms and the overall level. The results of this analysis are presented in Table 4. Small orchard : The elasticity coefficient (X 2 ) bearing trees (X 3 ), age of orchards (X 4 ), manures were positive and significant at one per cent level of probability. This indicated that the bearing trees, age of orchard and manures were the important inputs to which the yield of mango was highly responsible. Specifically one per cent increase in the bearing trees is expected to increase yield by 0.96 per cent. The elasticity coefficient for age of orchards was also positive and significant at one per cent level of probability. This indicated that yield of Alphonso mango increases with an increase in age of orchard. The elasticity coefficient for manures was also positive and significant at one per cent level of probability. This indicated that yield of Alphonso mango increases with increase in quantity of manures. The elasticity coefficient for nitrogen was negative and significant, indicating that there was decline in yield with increase in level of nitrogen. The elasticity coefficient for P 2 O 5 was positive and significant at five per cent level of probability. This indicated that increase in P 2 O 5 was expected to increase yield. The elasticity coefficient for K 2 O was negative and significant at five per cent level of probability. This indicated that there was decline in yield with increase in quantity of K 2 O. The elasticity coefficients for other variables though positive but were non-significant. The variation in yield of Alphonso mango explained by the explanatory variables was 96 per cent indicating that all important variables were included in the equation. Medium orchard : The elasticity coefficients (X 2 ) bearing trees (X 7 ) K 2 O was positive and significant at one per cent and five per cent level of probability, respectively. This indicated that

4 WAGALE ET AL. Table 3 : Per hectare cost of maintenance of mango orchard (Figures in Rs.) Particulars Size group of orchards Hired labour a) Male 4616 (8.92) 5066 (9.42) 6436 (11.32) 5373 (9.93) b) Female 1193 (2.31) 1425 (2.65) 1995 (3.51) 1537 (2.84) 2. Manures 2789 (5.39) 2933 (5.46) 4278 (7.53) 3333 (6.16) 3. Fertilizers 1918 (3.71) 1981 (3.69) 2176 (3.83) 2025 (3.74) 4. Plant protection 1793 (3.47) 1571 (2.92) 1808 (3.18) 1724 (3.19) 5. Growth promoter (Cultar etc.) 480 (0.93) 360 (0.67) 422 (0.74) 421 (0.78) 5. Growth promoter (Cultar etc.) 480 (0.93) 360 (0.67) 422 (0.74) 421 (0.78) Input cost (Rs.) (24.73) (24.81) (30.11) (26.64) 6. Land revenue and other cesses 42 (0.081) 45 (0.084) 48 (0.084) 45 (0.083) 7. Depreciation on implements and machinery 580 (1.12) 540 (1.00) 620 (1.09) 580 (1.07) 8. Amortization value 7904 (15.28) 7904 (14.70) 7904 (13.91) 7904 (14.61) 9. Interest on working capital(13% for 12 months) 1663 (3.22) 1734 (3.22) 2225 (3.91) 1874 (3.46) Cost A (44.43) (43.81) (49.10) (45.86) 10. Interest on fixed capital 620 (1.20) 714 (1.33) 650 (1.15) 661 (1.22) 11. Rental value of land (21.04) (21.86) (22.20) (21.72) Cost B (66.67) (67.00) (72.45) (68.80) 12. Family labour a) Male 5548 (10.72) 5325 (9.90) 4106 (7.23) 4993 (9.23) b) Female 1886 (3.65) 1626 (3.02) 1104 (1.94) 1538 (2.84) 13. Supervision charges 1278 (2.47) 1334 (2.48) 1712 (3.01) 1441 (2.66) Cost C (83.51) (82.40) (84.63) (83.53) 14. Marketing cost 8534 (16.49) 9460 (17.60) 8735 (15.37) 8909 (16.47) 15. Total cost of production Yield in quintal Value of produce Net returns at a) Cost A b) Cost B c) Cost C Profit at cost of production Cost benefit ratio at total cost of production Per quintal cost of a) Cultivation b) Production

5 32 Table 4 : Elasticity coefficients for selected variables Particulars/Variables Size group of orchards 1. Constant intercept ( ) ( ) ( ) ( ) 2. X 1 area (ha) ( ) ( ) ( ) ( ) 3. X 2 bearing trees * ( ) * ( ) ( ) * ( ) 4. X 3 age of orchard (years) * ( ) ( ) * ( ) * ( ) 5. X 4 manures (q) * ( ) ( ) * (0.0224) * ( ) 6. X 5 N (kg) * ( ) *** ( ) ( ) * ( ) 7. X 6 P 2 O 5 (kg) ** ( ) ( ) ( ) ( ) 8. X 7 K 2 O (kg) ** ( ) ** ( ) ( ) ( ) 9. X 8 male labour (days) ( ) ( ) ( ) ( ) 10. X 9 female labour (days) ( ) ( ) ( ) ( ) 11. X 10 plant protection (Rs.) ( ) ( ) ( ) ( ) 12. R *Significant at 1 per cent level of probability **Significant at 5 per cent level of probability ***Significant at 10 per cent level of probability RESOURCE USE EFFICIENCY IN ALPHONSO MANGO PRODUCTION one per cent increase in bearing threes was expected to increase yield by 85 per cent. In case of K 2 O indicated that the five per cent increase in K 2 O was expected to increase yield by 85 per cent. The elasticity coefficient for nitrogen was negative and significant at 10 per cent level of probability. This indicated that there was a decline in yield with advancement of nitrogen. The elasticity coefficients for other variables i.e. area, manures and male labour were negative and nonsignificant and remaining variables were positive but nonsignificant. The variation in yield of Alphonso mango explained by the explanatory variables in medium size orchards was 85 per cent indicating that all important variables were included in the equation. Large orchard : The elasticity coefficient (X 4 ) manures were positive and significant at 1 per cent level of probability. This indicated that one per cent increase in quantity of manures was expected to increase yield by 99 per cent. The elasticity coefficient for (X 3 ) age of orchards was negative and significant indicating that there was a decline in yield with advancement of age of trees. The elasticity coefficients for other variables through positive but were non-significant. The variation in yield of Alphonso mango explained by the explanatory variables in large size orchard was 99 per cent indicating that all important variables were included in the equation. Overall : The elasticity coefficient (X 3 ) bearing trees, (X 4 ) age of orchard and (X 5 ) manure were positive and significant at 1 per cent level of probability. This indicated that one per cent increase in age, quantity of manure and number of bearing trees were expected to increase yield by per cent. The elasticity coefficient (X 6 ) nitrogen was negative and significant indicating that there was decline in yield with addition of nitrogen. The elasticity coefficient for other variables i.e. P 2 O 5 and K 2 O though were positive but nonsignificant. The elasticity coefficient for male labour, female labour and plant protection were negative and nonsignificant indicating the excess utilization of these resources. The variation in yield of Alphonso mango explained by the explanatory variables at overall level was 96 per cent indicating that all important variables were included in the equation. Resource productivity : Marginal value products of the selected variables were computed by multiplying marginal physical product at

6 geometric mean level with the per crate prices (Table 5). The per unit cost of the factors was calculated and the ratio of marginal value product of factor cost was worked out. One of the objectives of the present study is to find out input productivity and efficiency of their use. For the purpose, geometric means of the input resources and estimates of total returns ( ) at geometric means levels of inputs (X i ) were found out with the help of estimated log linear production functions. Table 5 : Geometric mean levels of input resources. 33 indicating scope of expanding the use of these inputs. But the expenditure on other variables i.e. manures, nitrogen, male labour etc. need to be curtailed. The MVP/FC ratio for non-cash inputs factors like age of orchard and number of bearing trees could not be worked out. Marginal value, product and factor price for selected for large size orchard are presented in Table 8. Marginal value, product and factor price for selected Input resources Geometric mean 1. Area (ha) Manures (q) N (kg) P 2 O 5 (kg) K 2 O (kg) Male labour (days) Female labour (days) Plant protection (Rs.) Estimated total returns ( ) at G.M. level of Xi (Rs. per farm) WAGALE ET AL Allocative efficiency : Marginal value product and factor price for selected for small size orchard are given in Table 6. The marginal value product of variables manures (X 2 ), P 2 O 5 (X 4 ) was positive. Ratio of MVP/FC were more than unity in case of manures, P 2 O 5 etc. indicating the scope of expanding the use of these inputs. But the expenditure on other variables needs to be curtailed. The MVP/FC ratio for non-cash inputs factors like age of orchards and number of bearing trees could not be worked out. at overall size are presented in Table 9. The marginal value product of variable manures (X 2 ), phosphorus (X 4 ) and potassium (X 5 ) was positive. The ratio of MVP/FC was more than unity in the case of manures, phosphorus and potassium indicating the scope of expanding the use of these inputs. The expenditure on other variables i.e. nitrogen, human labour, plant protection etc. need to be curtailed. The MVP/FC ratio for non-cash input factors like age of orchard and number of bearing trees could not be worked out. Table 6 : Marginal value product and factor price in small size orchard. Variables MPP MVP MVP/FC Remarks 1. X 1 area (ha) Excess use 2. X 2 manures (q) Under utilization 3. X 3 N (kg) Excess use 4. X 4 P 2 O 5 (kg) Under utilization 5. X 5 K 2 O (kg) Excess use 6. X 6 male labour (days) Excess use 7. X 7 female labour (days) Excess use 8. X 8 plant protection (Rs.) 2.47E Excess use Marginal value, product and factor price for selected for medium size orchard are presented in Table 7. The marginal value product of variable phosphorus (X 4 ), potassium (X 5 ) was positive. Ratio of MVP/FC was more than unity in case of phosphorus and potassium This allocative resource use efficiency across different orchard size revealed that mango growers have to be given adequate know-how for resource management and their use. The mango farmers can increase their profitability in mango production by proper reallocation of resources.

7 34 RESOURCE USE EFFICIENCY IN ALPHONSO MANGO PRODUCTION Table 7 : Marginal value product and factor price in medium size orchard. Variables MPP MVP MVP/FC Remarks 1. X 1 area (ha) Excess use 2. X 2 manures (q) Excess use 3. X 3 N (kg) Excess use 4. X 4 P 2 O 5 (kg) Under utilization 5. X 5 K 2 O (kg) Under utilization 6. X 6 male labour (days) Excess use 7. X 7 female labour (days) Excess use 8. X 8 plant protection (Rs.) Excess use Table 8 : Marginal value product and factor price in large size orchard. Variables MPP MVP MVP/FC Remarks 1. X 1 area (ha) Excess use 2. X 2 manures (q) Under utilization 3. X 3 N (kg) Excess use 4. X 4 P 2 O 5 (kg) Under utilization 5. X 5 K 2 O (kg) Excess use 6. X 6 male labour (days) Excess use 7. X 7 female labour (days) Excess use 8. X 8 plant protection (Rs.) 3.69E Excess use Table 9 : Marginal value product and factor price at overall size orchard. Variables MPP MVP MVP/FC Remarks 1. X 1 area (ha) Excess use 2. X 2 manures (q) Under utilization 3. X 3 N (kg) Excess use 4. X 4 P 2 O 5 (kg) Under utilization 5. X 5 K 2 O (kg) Under utilization 6. X 6 male labour (days) Excess use 7. X 7 female labour (days) Excess use 8. X 8 plant protection (Rs.) -4.4E Excess use REFERENCES Govekar, M.A. (1995). Junya Amba Kalmanche Srinivasan, N. (2005). Development initiatives by NABARD for promotion of mango export. In consultation workshop Punarjeevan Karun Utpadan Vadava. Bali Raja. 26 (3) : of mango Export Projects of Indian mangoes held on 23 rd February, 2005 at Mumbai. Mathew, H., Litz, R.E., Wilde, H.D. and Wetzskin, H.K. (1993). Genetic transformation of mango. Acta. Hort. 341 : Received : January, 2006; Accepted : August, 2006

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