Sandalwood and Agarwood are two expensive trees. Sandalwood vs Agarwood cultivation profit per acre is given with a complete project report of both trees.
Agarwood cultivation profit per acre and Sandalwood farming profit per acre are given in the below project reports.
Agarwood cultivation profit per acre Project Report
Agarwood cultivation cost per acre
| Plants cost 1 plant price = Rs 30 to Rs 100. Sandalwood plants per acre = 700 plants. Let’s assume 1 sapling price = Rs 30. 700 plants price = Rs 30 x 700 plants = Rs 21,000. Planting material cost = Rs 21,000. Other costs Field preparation cost = Rs 15,000. Fertilizer and labour cost = Rs 28,000. Irrigation cost = Rs 15,000. Drip irrigation cost per acre = Rs 60,000. Plant protection charges = Rs 6000. Miscellaneous cost = Rs 5000. Total 1 year cost = Rs 150,000, saplings cost included. Agar tree harvesting time is a minimum of 8 years and it gives the best results after 12 years. It is mainly harvested for resin, a dark black dense liquid. Total cost for 8 years To get an 8-year cost first reduce one-time cost from 1st-year cost. One-time costs are sapling cost and drip cost. Sapling and drip costs = Rs 21000 (plant cost) + Rs 60,000 (drip cost) = Rs 81,000. Now reduce sapling and drip cost from Rs 150,000 (1-time cost). Cost = Rs 150,000 – Rs 81,000 = Rs 69,000. 8 years cost = Rs 69,000 x 8 years = Rs 5,52,000. 8 year cost = Rs 5,52,000 + Rs 81,000 = 10,53,000. Total 8 years cost = Rs 6,33,000. |
Profit per acre
| Agarwood resin per tree 1 Agarwood tree produces an average of 4 kg resin. Resin price per kg in India = Rs 2 lakh to Rs 5 lakh (as per quality). Trees per acre = 500 trees. Profit = Multiply 500 trees with selling price (Rs 2 lakh). 500 trees x Rs 2 lakh = Rs 10 crore. Profit = Farming cost – Profit. Net profit = Rs 10 crore – Rs 6,33,000. Net profit = Rs 9,93,67,000. Note – So this is the agarwood cultivation profit per acre, project report assumption. Profit may differ according to the yield quality, quantity, market, demand and time. Be aware of buying duplicate saplings which are available in the market. Be noted that Agarwood cultivation is not permitted in every state, so first check the permission and start farming. |
Sandalwood farming profit per acre (Project Report)
Sandalwood cost per acre
| Plant cost 1 sandalwood sapling price Rs 30 to Rs 100 as per quality. Sandalwood plants per acre = 400 plants. Sandalwood needs equal or double host plants to survive. Let’s assume 1 plant price is Rs 100. Sandalwood plants cost per acre = 300 plants x Rs 100 = Rs 30,000. Host plant cost = 300 plants x Rs 30 = Rs 9000. Total plant cost = Rs 30,000 (sandalwood) + Rs 9000 (host) = Rs 39,000. 1st-year cost Plant cost – Rs 39,000. Irrigation – Rs 50,000. Drip irrigation cost per acre = Rs 60,000. Fertilizer – Rs 20,000. Land preparation – Rs 10,000. Labour cost – Rs 15,000. Plant protection – Rs 6000. Miselnius – Rs 5000. Total – Rs 205000. Total cost for 10 years Reduce one-time cost from 1st year cost i.e sapling cost and drip cost. Reduce one-time cost = Rs 39,000 (plant cost) + Rs 60,000 (drip cost) = Rs 99,000. Now reduce sapling and drip cost from 1st year’s total cost (Rs 205000). Cost = Rs 99,000 – Rs 205000 = Rs 106000. 10 years cost = Rs 106000 x 9 years = Rs 954000. Now add 1st-year cost to 9 year cost to get all 10-year costs. 10 year cost = Rs 954000 (9 year cost) + Rs 205000 (1st year cost) = Rs 11,59,000. Total 10 years cost = Rs 11,59,000. Note – After adding harvesting cost Rs 25,000 the total cost would be around Rs 11,84,000 after 10 years. |
Sandalwood farming income
| Heartwood and sapwood quantity also depends on the tree’s weight. One sandalwood tree weight after 15 years might be between 180 kg to 200 kg. A tree weighing 180 to 200 kg might contain an average of 10 to 24 kg heartwood, and 65-70 kg sap wood. Profit calculation for 10 years is being done here. Let’s assume 1 tree produces 10 kg of heartwood. 1 tree = 10 kg heartwood. Sandalwood trees per acre = 300 trees. Yield per acre = 10 kg heartwood x 300 trees = 3000 kg heartwood. Thus 300 trees will produce 3000 kg heartwood. 1 kg heartwood price private sector = Rs 15000 to Rs 20,000 Heartwood price government = Rs 6000 to 6500. Let’s assume a price of Rs 6000 per kg. Then 3000 kg heartwood x Rs 6000 = 18,000000. Total Profit = Rs 18 crore. Net profit = Profit – Cost. Net profit = Rs 18000000 – Rs 11,84,000 = Rs 16,81,6000. Net Profit = Rs 16,81,6000. Note – This is the project report assumption. Profit and cost may differ according to variety, market, availability, demand price etc. Sapwood is not added and after adding it profit numbers may increase a bit. |
Conclusion – Sandalwood and Agarwood cultivation project report sharing cost and profit per acre given here. After reading the reports closely one can arrange the estimated costs and get an idea about profit in the concerned farming.