COST OF TEAK CULTIVATION IN ONE HECTARE OF WASTELAND

Spacing:2m x 2m Average wage rate : Rs.100/M

No. of trees/ha.:2500 Casuality replacement : 20 %
Survival/ha.:2000
SL. PARTICULARS OF WORKS UNIT Cost(Rs.)per year
NO. 1 2
1 Site preparation 10 MD 1000
2 Initial ploughing Lumpsum 1000
3 Alignment & staking 5 MD 500
4 Digging of pits(45x45x45 Cm) 108 MD & 10800 2200
and refilling of pits after mixing 22 MD
FYM,Fertiliser & insecticides
@ (30 pits/MD & 100 pits/MD )
5 Cost of FYM @3 Kg/pit Rs.150/ton. 2063
6 Cost of fertiliser @100 Rs.4/Kg 1000 1000
gm/plant
7 Cost of insecticides / LS 300 300
pesticides
8 Cost of plants including Rs.3.00/ 7500 1500
transport(2500,500) plant
9 Planting & replanting @ 25 & 5MD 2500 500
100 plants per MD.
10 Weeding(3,2,1) 16 MD per 4800 3200
Weeding
11 Soil working (1 working in the 16 MD per 1600 3200
Ist year and 2 workings upto working
4th year)
12 Irrigation during dry months LS 1000 1000

13 SUB TOTAL RS. 34062.5 12900

14 CONTINGENCY 5 % RS. 1703 645

15 GRAND TOTAL RS. 35766 13545

Margin @10% RS. 3577 1355
Bank loan @ 90% RS. 32189 12191
 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 1 2 3

Cost 35766 13545 7455

Benefits 0 0

Net Benefit -35766 -13545 -7455

PWC@ 15% 51530

PWB@ 15% 75187
BCR 1.46 : 1

IRR 23.57%

Repayment Schedule (Teak)

 Outstanding
Year Bank loan Bank Loan Interest @

12%
1 32189 32189 3863
2 12191 44380 5326
3 6710 51089 6131
4 3308 54397 6528
5 3308 57704 6924
6 1512 59216 7106
7 1512 60728 7287
 Annexure I

Average wage rate : Rs.100/MD

Casuality replacement : 20 %

Cost(Rs.)per year TOTAL

3 4 5 6 7 (RS.)
1000
1000
500
13000
0
0
0
2063
1000 3000
0
300 300 300 300 300 2100
0
9000
0
3000
0
1600 9600
0
3200 3200 3200 1300 1300 17000
0
0
1000 3000
0
7100 3500 3500 1600 1600 64262.5
0
355 175 175 80 80 3213
0
7455 3675 3675 1680 1680 67476
746 368 368 168 168 6748
6710 3308 3308 1512 1512 60728
 Annexure II

Annexure - III

(Rs.)
4 5 6 7

3675 3675 1680 1680

200000

-3675 -3675 -1680 198320

Annexure IV
(Rs.)
Cumulative Net
outstanding Repayment Surplus Remarks

Interest Income Principal Interest ( Rs. )

3863 Around 50% of
9188 total income will go
15319 towards repayment
21847 of loan leaving .
28771 0 0 sufficient surplus
35877 for sustenance
43164 200000 60728 43164 96108