Agarwood & timber plantation
Agarwood, teak and red sanders are long-tenure crops: the trees stand for seven to twelve years and are harvested once, at high value. They suit sloping or remote parcels that cannot support intensive vegetable work, and they need very little attention after the first two years. Because the commitment is long, these run only under a multi-year written agreement — and red sanders additionally requires statutory permission before planting and felling.
Land needed
1 acres+
First harvest
84 months
Indicative yield
833 kg/acre
Water need
Moderate
Indicative setup
₹1,80,000
Species covered
3
What gets planted
| Species | Soil pH | Harvest | Yield / acre | Rate |
|---|---|---|---|---|
| Agarwood | 5.5–7 | 84 months | 500 kg | ₹1800/kg |
| Teak | 6–7.5 | 120 months | 1,200 kg | ₹900/kg |
| Red sanders | 6–8 | 144 months | 800 kg | ₹2200/kg |
The full crop cycle
Every stage below is tracked in the app: field staff close tasks with photos and a location, and a supervisor approves them before the cycle moves on.
- 1
Site survey & agreement
Month 0–2Slope, drainage and soil are surveyed, permits checked where the species needs them, and a long-tenure agreement signed with the landowner.
- 2
Pitting & planting
Month 2–6Pits dug at species spacing, filled with compost, saplings planted and each one fenced or guarded against cattle.
- 3
Establishment care
Month 6–30Two years of weeding, watering in dry spells, gap filling for failed saplings and formative pruning.
- 4
Growth monitoring
Month 30–84Girth and height recorded each year with photographs, boundary and fire protection maintained, and intercropping allowed in the early years.
- 5
Harvest & compliance
Month 84–144Felling or resin extraction is done only after the required permissions, with weights and buyer records against the crop cycle.
Project report
Basis: 1 acre · about 400 agarwood trees · 84-month cycle
Setup cost (one-time)
₹1,30,000
Running cost / cycle
₹4,49,000
Expected sales / cycle
₹9,00,000
Farm margin / cycle
₹4,51,000
Cycles per year
1 per 7 yrs
After first cycle
₹3,21,000
Break-even
Month 84
Sales begin
Month 84
Setup cost
| Land preparation & pits | ₹30,000 |
| Saplings (400) | ₹60,000 |
| Fencing | ₹40,000 |
| Total | ₹1,30,000 |
Running cost per cycle
| Upkeep labour (7 years) | ₹1,75,000 |
| Organic manure (7 years) | ₹70,000 |
| Resin inoculation (year 5–6) | ₹80,000 |
| Permits, grading & harvest | ₹40,000 |
| Landowner lease (indicative) | ₹84,000 |
| Total | ₹4,49,000 |
Expected sales per cycle
| Resin-bearing wood chips (mixed grade) | 500 kg × ₹1,800 | ₹9,00,000 |
Season scenarios (per cycle)
Weak: 25% lower yield and 15% lower price. Good: 10% higher on both.
Weak season
Sales ₹5,73,750
Margin ₹1,24,750
Expected
Sales ₹9,00,000
Margin ₹4,51,000
Good season
Sales ₹10,89,000
Margin ₹6,40,000
Key success factors
- Needs a long lease (8+ years) agreed up front.
- Resin grade decides price — from ₹800 to ₹5,000+ per kg.
- Intercrops (pepper, turmeric) can earn in the early years.
Main risks
- No income until harvest — about seven years.
- Resin formation and grade are uncertain.
- Transport and sale need forest-department paperwork.
Final summary
A long-horizon plantation: no sales for seven years and the widest range of outcomes of any model. Suitable only for owners who want a long lease and are comfortable with uncertainty; intercropping is strongly recommended.
What this means for you
For landowners
- This is a multi-year commitment — the agreement runs for the life of the trees, not one season.
- Rent is paid through the waiting years, so the land earns before the trees are cut.
- Short crops can often be grown between the rows during the first two or three years.
- Where the species is regulated, we obtain the permissions and keep the paperwork on file.
- Harvest terms, share and felling responsibility are written into the agreement before planting.
For SHG teams
- Heavy work is concentrated in the first two years — pitting, planting, guarding and weeding.
- After establishment the team handles periodic rounds: measurement, fire lines, fencing repair.
- Tasks and proof photos work exactly as on annual crops, just at a slower rhythm.
- Teams stay paid through the quiet years by taking on intercrops on the same parcel.
For bulk buyers
- Harvest dates are planned in advance, so bulk orders can be booked against a known window.
- Every batch carries a trace code linking it to the parcel, crop cycle and harvest date.
- Grown organically under supervised field records; quality grade is noted at collection.
- Hotels, institutions, retailers and Ayurveda makers can arrange scheduled pickups or delivery.
- Supply depends on weather and season; confirmed quantities are shared closer to harvest.
All figures on this page are indicative planning numbers drawn from our crop catalogue. Actual yield, timing and price depend on soil, weather and market. This is a private venture with no government affiliation, and nothing here is an offer of guaranteed returns.