Western Ghats Kokum Foundation - Organic Farming Association of ...

Mango and Kokum are perennial crop with a long pre-bearing period followed by
several phases of bearing period namely: (1) steady yield increasing phase, (2) stabilized
yield phase, (3) yield declining phase, (4) uneconmic yield. Actually flow of costs and
returns in these crops spreads over a number of years with varying magnitude. The
expenditure during the pre-bearing stage constitutes the investment on the crop, while the
full benefit quite sometime to accrue. Investment in this long duration crop is subject to
somewhat uncertain economic situation. Before making such investment, growers and
financial institutions should have a clear understanding about capital and costs involved
and returns likely from such a long term investment so as to know whether the investment
will be worthwhile. For that all future costs and returns are discounted to present value at
appropriate discount rate (14%) for productive life period of the investment. Following
four criteria are generally used to decide the profitability of investment.
1. Net Present Value (NPV)
2. Benefit Cost Ratio (BCR)
3. Pay Back Period (PBP)
4. Internal Rate of Return (IRR)
Results and Discussion
As like mango, Kokum is a long duration crop. There are two broad stages of growing
this. crop. First is the establishment stage and second production stage. Kokum crop
requires 6 to 7 years to come to fruiting. During this stage, expenditure is incurred on
raising this crop, but there is no production hence no income. This particular stage is
regarded as capital cost. Production stage begins when vegetative growth of trees is
completed. In the production stage, there is less production in the beginning and it goes on
increasing upto 15 years and attains full, production at that stage as trees become more
matured and adult. Then there is stabilization of production at this level for a pretty long
period of about 40 years in case of Kokum. This is the prime period of economic or
commercial production. In the establishment stage, the items of costs are labour required
for various operations and purchase of input material. In production stage, the number of
labour units and quantities of material inputs increase as trees grow older and production
increases and they remain constant during stabilization phase.
Table 1: Per Hectare Cost of Establishment of Kokum upto the Year
Year Amount (Rs.)
First 28250
Second 3781
Third 3882
Fourth 3654
Fifth 4674
Sixth 5601
Seventh 6857
Total 56699
First year cost includes value of land.
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Resource Book on Kokum (Garcinia indica Choisy)
Western Ghats Kokum Foundation, Panaji - Goa