COST OF TEAK CULTIVATION IN ONE HECTARE OF WASTELAND

Spacing:2m x 2m
No. of trees/ha.:2500
Survival/ha.:2000
SL. PARTICULARS OF WORKS
NO.
1 Site preparation
2 Initial ploughing
3 Alignment & staking
4 Digging of pits(45x45x45 Cm)
and refilling of pits after mixing
FYM,Fertiliser & insecticides
@ (30 pits/MD & 100 pits/MD )
5 Cost of FYM @3 Kg/pit
6 Cost of fertiliser @100
gm/plant
7 Cost of insecticides /
pesticides
8 Cost of plants including
transport(2500,500)
9 Planting & replanting @
100 plants per MD.
10 Weeding(3,2,1)

Average wage rate : Rs.100/M

Casuality replacement : 20 %
UNIT

Cost(Rs.)per year
2

1
10 MD
Lumpsum
5 MD
108 MD &
22 MD

1000
1000
500
10800

2200

Rs.150/ton.
Rs.4/Kg

2063
1000

1000

LS

300

300

Rs.3.00/
plant
25 & 5MD

7500

1500

2500

500

16 MD per
Weeding
16 MD per
working

4800

3200

1600

3200

LS

1000

1000

13 SUB TOTAL

RS.

34062.5

12900

14 CONTINGENCY 5 %

RS.

1703

645

15 GRAND TOTAL
Margin @10%
Bank loan @ 90%

RS.
RS.
RS.

35766
3577
32189

13545
1355
12191

11 Soil working (1 working in the

Ist year and 2 workings upto
4th year)
12 Irrigation during dry months

Techno - economic parameters (Teak )

1 Spacing of 2.0 m x 2.0 m has been adopted.

2 The number of trees to be planted are 2500 per hectare.
3 Survival is considered at 80% with 20% casualty replacement.
4 Life saving irrigation to be given during the first three years.
5 Poles are ready to harvest after about 7 years.
6 Margin money has been assumed at 10% of the total financial outlay.
7 Rate of interest on loan has been considered at 12%.
8 Repayment period is 7 year with grace period of 6 years.

Financial Analysis and economics of Teak cultivation (One ha. model)

Years

Cost

35766

13545

7455

-35766

-13545

-7455

Benefits

Net Benefit

PWC@ 15%
PWB@ 15%
BCR

51530
75187
1.46 : 1

IRR

23.57%

Repayment Schedule (Teak)

Year

Bank loan

Outstanding
Bank Loan

Interest @

1
2
3
4
5
6
7

32189
12191
6710
3308
3308
1512
1512

32189
44380
51089
54397
57704
59216
60728

12%
3863
5326
6131
6528
6924
7106
7287

Annexure I

Average wage rate : Rs.100/MD

Casuality replacement : 20 %
Cost(Rs.)per year
3

TOTAL
(RS.)
1000
1000
500
13000

2063
3000

1000
300

300

300

300

300

2100
9000
3000

1600
3200

9600
3200

3200

1300

1300

1000

17000

3000

7100

3500

3500

1600

1600

64263

355

175

175

80

80

3213

7455
746
6710

3675
368
3308

3675
368
3308

1680
168
1512

1680
168
1512

67476
6748
60728

Annexure II

Annexure - III

5
3675

6
3675

1680

(Rs.)
7
1680
200000

-3675

-3675

-1680 198320

Annexure IV
(Rs.)
Cumulative
outstanding

Repayment

Net
Surplus

Remarks

Interest
3863
9188
15319
21847
28771
35877
43164

Income

Principal Interest

( Rs. )
Around 50% of
total income will go
towards repayment
of loan leaving .
sufficient surplus
for sustenance

200000

60728

43164

96108