Abstract

The objectives of the study are to analyse the productivity and profitability of teak plantations in Nilambur North and Nilambur South Divisions. For this yield data for the period 1967 to 1994 covering an area of 12, 500 has was collected. The mean yield in a rotation of 53 years was 151 meter cube hectare minus one showing a mean annual increment (MAI) of 2.854 metre cube hectare minus one year minus one. The average yield obtained correspond to that of site quality IV. Considering the yield of the lowest decile of the area of plantation, the average site quality observed was far below that of the lowest class. Even the yield in the highest decile, the site quality observed was only 11/111. The profitability analysis was done using the current prices and costs of 1995. When no land rent is considered, the net benefit in a rotation of 53 years was Rs.23 lakhs. Net present value (NPV) and benefit cost ratio (BCR) were calculated using different discount rates such as 6, 9, 12 and 18. At 12 rate ofdiscount the NPV for one hectare of teak plantation with mean yield was Rs. 40, 000 and the BCR was 3.2. The international rate of return (IRR) was 31.3. The maximum land rent possible was calculated as an indication of the surplus available from teak plantations. At 12 rate of discount, for mean yield, the maximum land rent possible was Rs. 4500 hectare minus one. There is an indication of changes in productivity in teak plantations across time. Careful analysis is required to specifiy the magnitude ofdeterioration and the reasons for the same. It is recommended that a more regular assessment of the productivity level in teak plantation be made to monitor the situation and collect data for optimising the rotation age and management inputs