The present study was undertaken in Sabarkantha district of North Gujarat in year 2012 with a view to examine the input use, cost structure and returns in production and marketing of papaya. The results of study revealed that the average total cost of cultivation of papaya was ` 181307.40. It was the highest ` 196788 on small farms followed by ` 180231.60 on medium farms, and ` 166902.50 on large farms. Higher costs on small farms are associated with intensive use of family labour, bullock labour, manures and irrigation charges. The average overall farm harvest price received by the papaya growers was ` 492.22 per quintal. It varied from ` 454.20 on small farms to ` 520.25 on large farms. The average net profit per hectare over (Cost-C2) was ` 138877.00 and it increased with the increase in size of farms, except small size farms. The overall input-output ratio was 1:1.73 on the basis of cost- C2. It was the highest (1: 2.03) on large farms, followed by medium farms (1:1.72), and small farms (1:1.48). The average cost of production per quintal of papaya was about ` 284.38 which was lower than the market price of papaya ranging from ` 450 to ` 650 per quintal.