TEAK PLANTATIONS IN NILAMBUR - Kerala Forest Research Institute

ha -1 year -1 is considered, the profitability of plantations with low yield is 7.8%
(Table 4.4). Even with a higher land rent of Rs. 2500, the profitability of
plantations with low yield is 6% (Table 4.5). Using B/C ratio as a criterion,
discount rates higher than 12% brings down the B/C ratio to less than 1 for
low yield when no land rent is considered. When a land rent above Rs.1300 is
considered, a discount rate above 6% brings down the B/C ratio to less than
unity for low yield. When mean yield is considered, the B/C ratio becomes
less than 1 only at a discount rate of l8% with a land rent of Rs.2500.
Table 4.6 shows the maximum land rent possible in Nilambur Divisions
under different discount rates. At 12% discount rate, if a high yield is
obtained the maximum land rent possible is Rs. 9750 ha -1 year -1 If the yield is
low, no land rent can be paid at a discount rate of 12%. The term land rent is
used not in a narrow sense. It only denotes the potential surplus considering
the current cost, yield and benefit. If any of them changes, the surplus will
also change. This also indicates the maximum money available for higher
inputs if needed.
Table : 4.6
Maximum land rent possible in Nilambur Divisions for teak plantations
under different discount rates (Rs/ha)
Yield level
Low
Mean
High
Discount rates
6 % 9% 12% 18%
2500 750 -70 -790
11500 6750 4500 2250
23000 14000 9750 6250
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