Average Melia Dubia Profit Per Acre in India: A Comprehensive Analysis

Melia Dubia, also known as malabar neem or malai vembu, is a fast-growing tree species that can be used for timber, pulp, paper, plywood, and biomass production. It is native to India, Sri Lanka, Myanmar, and the Andaman Islands and has been introduced to other tropical and subtropical regions.

Melia Dubia Profit per Acre in India

Melia Dubia is considered one of the most promising agroforestry crops in India due to its high growth rate, adaptability, pest resistance, and multiple uses. In this blog post, Expalin the economic viability of Melia Dubia plantation in India by analyzing the factors affecting the average profit per acre, the financial returns of Melia Dubia cultivation, and the profit potential of Melia Dubia plantation on an acreage basis.

Economic Viability of Melia Dubia Plantation in India

The economic viability of Melia Dubia plantation in India depends on various factors, including initial investment cost, maintenance cost, yield, market price, and rotation period. The initial investment includes land preparation, planting material, irrigation system, fencing, and labor. Maintenance costs include weeding, pruning, fertilizing, pest control, and harvesting. Yield depends on growth rate, spacing, site quality, and climatic conditions. The market price depends on demand and supply, quality, and transportation costs. The rotation period is the time for trees to reach maturity.

Factors Affecting the Average Profit Per Acre for Melia Dubia in India

  • Cost of land: The cost of land varies depending on the location, soil quality, irrigation facilities, and availability of land. The cost of land can range from Rs. 50,000 to Rs. 2 lakhs per acre.
  • Cost of planting material: The cost of planting material includes the cost of seedlings or saplings, transportation, and labor. The cost of planting material can range from Rs. 10 to Rs. 20 per plant.
  • Spacing and density: The spacing and density Melia Dubia plantation affect the growth and yield of the trees. The recommended spacing for the Melia Dubia plantation is 10 x 10 feet or 12 x 12 feet, which gives a density of 400 or 300 plants per acre, respectively.
  • Fertilizer and irrigation: The fertilizer and irrigation requirements for Melia Dubia plantation depend on the soil fertility and rainfall pattern. The recommended fertilizer dose for the Melia Dubia plantation is 100 g of NPK (17:17:17) per plant per year. The irrigation requirement for the Melia Dubia plantation is about 50 liters of water per plant per week during the dry season.
  • Weed and pest management: The weed and pest management practices for the Melia Dubia plantation include manual weeding, mulching, pruning, and application of biopesticides. The cost of weed and pest management can range from Rs. 2,000 to Rs. 5,000 per acre per year.
  • Harvesting and transportation: The harvesting and transportation costs for the Melia Dubia plantation include the cost of labor, machinery, loading, unloading, and transportation. The harvesting and transportation costs can range from Rs. 1,000 to Rs. 3,000 per ton of wood.
  • Market price: The market price of Melia Dubia wood depends on the demand and supply situation, the quality and quantity of timber, and the location of the market. The market price of Melia Dubia wood can range from Rs. 4,000 to Rs. 8,000 per ton.

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Melia Dubia Farming

Analyze the Financial Returns of Melia Dubia Cultivation in India

Cost of planting materialRs. 15 per plant
Spacing and density10 x 10 feet (400 plants per acre)
Fertilizer and irrigationRs. 5,000 per acre per year
Weed and pest managementRs. 3,000 per acre per year
Harvesting and transportationRs. 2,000 per ton of wood
Market priceRs. 6,000 per ton of wood
Interest rate10% per annum
Discount rate12% per annum
Inflation rate5% per annum
Growth rate15% per annum
Yield20 tons per acre at the end of 6 years

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Indian Currency

Financial Feasibility of Melia Dubia Plantation: Average Profit per Acre in India

Melia Dubia is native to India and grows well in tropical moist environments with deep, fertile, and sandy loam soils. It has a high biomass production of 80–250 tonnes per hectare from 4 to 8 years of planting. It is also suitable for agroforestry practices, as it can be planted along with crops or as a boundary or block plantation.

Assess the Average Earnings from Melia Dubia Cultivation per Acre in India

The average cost of cultivation of Melia Dubia per acre is Rs 15,000 for the first year, which includes the cost of seedlings, planting, weeding, irrigation, fertilizer, and pest management. The maintenance cost for the subsequent years is Rs 5,000 per acre per year. The average yield of Melia Dubia per acre is 30 tonnes at four years of age, 60 tonnes at six years of age, and 90 tonnes at eight years of age. The average price of Melia dubia timber in India is Rs 3,000 per tonne. Therefore, the average earnings from Melia Dubia cultivation per acre in India are as follows:

  • Rs 75,000 (30 x 3000 – 20000) at four years of age
  • Rs 165,000 (60 x 3000 – 35000) at six years of age
  • Rs 255,000 (90 x 3000 – 50000) at eight years of age

Economic Viability of Melia Dubia Farming: Profit Analysis Per Acre in India

The economic viability of Melia Dubia farming is determined by assessing its net present value, benefit-cost ratio, and internal rate of return. NPV represents the difference between benefits and costs, BCR is the ratio of benefits to costs, and IRR is the discount rate that makes NPV zero. A positive NPV, higher BCR, and high IRR indicate profitability. Discount rate of 10%, the NPV, BCR, and IRR of Melia Dubia farming per acre in India are:

  • Rs 54,545, 2.73, and 50% at four years of age
  • Rs 97,727, 3.79, and 64% at six years of age
  • Rs 140,909, 4.82, and 72% at eight years of age

Estimate the Average Revenue from Melia Dubia Plantation Per Acre in India

The revenue from Melia ubia plantations in India depends on market demand and supply. Most agroforestry initiatives are in Karnataka and Gujarat. Demand is high for plywood and particle board production, and supply is expected to increase after two to three years. The average revenue from Melia Dubia plantations may vary depending on region, season, and market conditions, with the plantation’s maturity expected to increase supply.

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Profit Margin

The average yield of Melia Dubia is around 250 tons per acre over a 10-year rotation period, which equates to approximately 25 tons per year. The market price varies based on the wood’s quality and purpose. For pulpwood, it’s priced at about Rs. 3,500 per ton, and for sawn timber, it’s around Rs. 5,000 per ton.

Based on the current price of Rs 3,000 per tonne. For instance, 125 tons as pulpwood would fetch about Rs. 4,37,500 (125 tons x Rs. 3,500), and the remaining 125 tons as sawn wood would bring Rs. 6,25,000 (125 tons x Rs. 5,000), totaling Rs. 10,62,500 over ten years, or about Rs. 1,06,250 annually.

Project Report on Melia Dubia Profit per Acre in India

AspectCost Range (in Rs.)
Cost of Land50,000 to 2,00,000 per acre
Cost of Planting Material10 to 20 per plant
Spacing and Density10 x 10 feet (400 plants/acre) or 12 x 12 feet (300 plants/acre)
Fertilizer and Irrigation100 g of NPK (17:17:17) per plant per year, 50 liters of water per plant per week during dry season
Weed and Pest Management2,000 to 5,000 per acre per year
Harvesting and Transportation1,000 to 3,000 per ton of wood
Market Price4,000 to 8,000 per ton (varies based on quality and purpose)
  • The above calculation is based on a current price of Rs. 3,000 per tonne for Melia Dubia wood:
  • 125 tons as pulpwood: Rs. 4,37,500 (125 tons x Rs. 3,500 per ton)
  • 125 tons as sawn wood: Rs. 6,25,000 (125 tons x Rs. 5,000 per ton)
  • Total income over ten years: Rs. 10,62,500 (Rs. 4,37,500 + Rs. 6,25,000) or about Rs. 1,06,250 annually.

Conclusion

The average profit per acre from Melia Dubia cultivation in India can vary significantly based on factors like land cost, planting materials, spacing, and market prices. However, with prudent management and market awareness, an approximate annual profit of Rs. 1,06,250 can be achieved over ten years, making it a potentially lucrative venture for Indian farmers.

Note: The images presented in this post are intended solely for representation purposes. The images are meant to serve as visual aids and should not be relied upon as accurate representations of their real-life counterparts.

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