Economics of Teak Plantation in Uttarakhand

Abstract

20-45 years old teak, rain-fed, plantations carried out on forest land in gaps of original sal forests, that received frost protection by the nursing effect of sal over-wood were analysed for financial viability in tarai region of Uttarakhand. The maximum NPV (Rs. 19,856) at 12 % discount rate and IRR (31.20%) was obtained in 21 years old Barakoli plantation. It was due to higher survival rate (43.85 %) and the lowest gestation period (21 years). On the other hand minimum IRR 23.95 % was found in case of Lakhanmandi plantation site. It was because of the poor survival rate (23.65 %) and a long gestation period of 45 years. In general all the unirrigated teak plantations on government land (NPV at 12 % rate of interest, Rs. 3,556 to Rs. 19,856 and IRR 23.95 to 31.20 per cent) were found financially viable.