Teak plantation profit per acre project report | STN

Teak plantation profit per acre and cost is given under a project report. After reading this blog you can understand mahogany or teak which is more profitable? Of Course teak is more profitable. The project report mentions cost and profit from teak plantation.

It is good to plant 500 timber teak trees per acre. The estimated cost is Rs 177,000 when a sapling is purchased at Rs 30. Teak plantation profit per acre is around Rs 16073000. The cost must include plant protection charges along with other expenses given here. The tree needs 13 to 15 years to mature. A single tree yields 13 to 15 cft and teak wood selling price after 12 years to 15 years is around Rs 32,500 depending on cft growth. Its price per cubic feet is Rs 2000 to Rs 4000 and one can earn a net profit of around Rs 16073000 by selling 500 healthy trees. 

Teak plantation profit per acre project report

Below calculation is given for one acre land explaining the number of plants fertilizer labour drip irrigation irrigation required in one acre.

Cost per acre

First calculate 1st year cost.

  • Teak plant price = Rs 25 to Rs 100.
  • Let’s take the price Rs 30.
  • Trees per acre = 500 trees.
  • Plant purchase cost = 500 plants x Rs 30.
  • Plants cost = Rs 15,000.
  • Labour cost = Rs  20000.
  • Fertilizer and pesticide cost = Rs 10,000.
  • Irrigation cost = Rs 16,000.
  • Plant protection charges = Rs 6000. 
  • Drip cost = Rs 55,000.
  • Fencing cost = Rs 55,000.
  • Total cost = Rs 177,000.

This tree needs 15 years to mature. Total 15 year cost is calculated below. First remove one time cost from the above 1st year’s total cost then multiply the remaining with 14 years and finally add first year and 14 year cost.

One time cost remove

Plants cost Rs 15,000 + Drip irrigation Rs 55,000 + Fencing cost Rs 55,000 = Rs 1,25,000.

1st year cost = Rs 177000.

New total 1st year cost 

Now reduce one time cost from the 1st year’s total cost.

Rs 177,000 – Rs 1,25,000 = Rs 52,000.

New total 1st year cost (without one time cost) = Rs 52,000.

Multiply the total 1st year cost (new) by 14 years to get 14 year cost.

Total cost = Rs 52,000 x 14 years = Rs 7,28,000.

To get the total 15 year cost add one time cost with Rs 728000.

Total 15 year cost = Rs 177000 + Rs 728000 = Rs 905000.

One time purchased items cost removal is necessary because farmers have purchased drip irrigation and plants one time only. They don’t have to purchase them again and again for 15 years.

Teak wood farming profit per acre

  • Teak yield per tree = 13 to 15 cubic feet.
  • Price per cubic feet = Rs 2000 to Rs 4000.
  • Let’s assume 1 tree yields 13 cft and price is Rs 2500.
  • 1 teak wood tree price = Rs 2500 x 13 cft = Rs 32,500.
  • 1 tree price after 12 to 15 years = Rs 32,500 depending on cft.
  • Trees planted per acre = 500 trees.
  • Profit per acre = Rs 32,500 x 500 trees = Rs 1625000.
  • Net profit = Rs 177,000 (cost) – Rs 1625000 (profit).
  • Net profit = Rs 16073000.

Note – So this is the estimated project report. The actual profit cost may differ according to the market, demand, yield, quality and plants availability etc.

It is also known as sagawan tree in India. Teak wood value is high in India for making sofa, furnitures etc. Hence its cultivation is profitable.

Conclusion – Here you got an idea about the required budget to start teak cultivation in India. Hopefully, you understood the required number of trees per acre, tree mature time, the yield per tree. A teak wood selling price is Rs 2000 to Rs 4000 per cubic feet and a healthy tree yields 13 to 15 cubic feet (cft). People wanted to start its farming gets an idea to arrange money for 500 plants and other expenses which is around Rs 177,000. It is told that after selling the 500 trees one can achieve a net profit of Rs 16073000 after 12 years to 15 years depending on tree growth and cubic feet measurment.

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