Most of the youngster today prefers to go abroad ,or to work in metro cities for better income and lifestyle rather than opting for traditional farming. This result in the pressure on the old parents who do traditional farming for livelihood. Due emotional connection with the ancestral property , Old parents usually don’t want to settle in abroad or in cities with their children.
Why youngster not preferring traditional farming ?
There are many reason for it. Most prominent are :
1. Difficulty in finding labor for farming.
2. Less profits in traditional farming.
3. Increased vulnerability due to climate change.
4. Time demanding as regular irrigation, pesticide, fertilizers, inspections and other activities need to be done.
Moreover, the high paying jobs in cities or abroad provide good lifestyle as well as better income security in comparison to traditional farming.
Even in Organic farming or any new mode of farming such as hydroponics , the fundamental problem of labor and profits remain the same as in traditional farming.
Why working professionals and Non resident Indians (NRI) are preferring tree farming ?
03 profitable tree farming business in India ! Tree farming in India !
Poplar , Eucalyptus and Melia dubia are most popular choice as a tree farming for people settled abroad. These 3 trees are mostly free from government regulation unlike other trees such as sandalwool ,sagwan etc which require pain taking legal process to get permission for growing ,cutting and selling.
Some Important advantages are :
1. Almost no requirement of labor in comparison to traditional farming.
2. Trees are less vulnerable to the vagaries of climate change unlike traditional wheat, rice etc.
3. Higher profits in comparison to traditional farming.
4. Short duration (3 -5 yr) tree crop options availability such as Poplar, Eucalyptus, Malabar neem.
5. No distress sale unlike other traditional crop such as wheat etc. which need to be harvested at a particular time. Farmers can plan and sell trees any time round the year.
Many TreeKisan app users are from abroad such as Canada , Australia. Utilizing the benefits of Transparent Market prices, tree valuation , NRI’s able to secure better deals from local thekedar or even sell through Treekisan app.
The Tree farming have gain popularity among working professionals in the Delhi-NCR, Chandigarh , Lucknow Region. Now, they don’t have to visit their far way farm lands as almost all information regarding timber price, buying ,selling can be managed easily with Treekisan app. Many YouTube channels mostly operated by tree nursery owners also contributed to the popularity of tree farming.
What are the risks in tree farming ?
Following are the risks in poplar , eucalyptus and melia dubia (malabar neem ) farming :
1. Wood price crash risk.
2. No local mandi for selling poplar wood.
3. Tree diseases.
1. Wood price crash risk
Poplar price trend ! Timber price trend ! Safeda price trends !
Although , the efforts required in tree farming is negligible in comparison to other traditional crops but the risk of timber price crash is still there similar to other crops. However, there is less uncertainty in case of timber prices. Historically, The timber price cycle is around 6-9 years.
Historical timber price trend
The lowest Poplar price registered in 2002-04 hovering around 90-150 Rs/qtl . Then the poplar prices gradually reached to peaks in 2011-2014 hovering around 1200 -1400 Rs/qtl (over size). And again followed downward trend till 2017 when the prices hover around 600-700 Rs/qtl (over size). Eucalyptus wood prices followed the similar trajectory. Melia-dubia ( malabar neem ) tree farming was recently introduced and its market is yet to develop fully in northern India.
2. No local mandi for selling wood
No local mandi for poplar, eucalyptus and malabar neem
Leaving specific regions like Yamunanagar, Hoshiarpur , Bareilly and some other few regions, the local wood mandi are either absent or offer only firewood rates ( 200-350 Rs/qtl) for these commercially valuable agricultural tree crops. However, now the Farmers can take advantage of TreeKisan App for solving the selling problem for their tree crop and even got triple the prices of what they would have got from local contractor. Farmers can even check prevailing rates of poplar, eucalyptus ,melia dubia ( malabar neem) in a transparent manner through the app.
3. Tree Diseases
Only Neglected tree plantation have risk of significant damage mainly in poplar tree. Eucalyptus trees are more robust and disease resistant in comparison to poplar tree. Periodic inspects and basic care is only required for tree plantations.
How some tree farmers tackle the price fluctuations successfully ?
In district Yamunanagar (Haryana), Many big zamindars have been pursing poplar tree farming since 35 year. They follow a cyclic approach, in which every year, only 25 % of tree plantation is sold . This fetch them yearly income from the land.
For example. Suppose, you are a big farmer ,having 12 acre of land . You would plan to sell tree crop of 3 acre only and plant the poplar seedling on that 3 acre land after harvesting . Thus , every year ,3 acre of land will be ready for harvesting assuming the poplar tree takes around 4 year for maturity.
Tree farming profit per acre in India
At current price (1500 -1200 Rs /qtl in Dec 2023), 3 acre of poplar tree will fetch around net profit of 30 lakhs. This approach can be compared with risk distribution approach followed in Stock market. These farmers don’t fell into temptation of selling at higher prices which may come in future.
What is the future of tree farming ?
Tree farming is one of the promising solution for tackling global warming and carbon sequestration. Think about the wood products such as table, bed , windows , doors are acting as carbon storage. At, Many countries including Australia and USA is now focusing on HWP ( Harvested wood products). A 52-metre-tall office tower made of engineered timber, designed by Bates Smart, has opened in Brisbane, Australia.
You might have notice penetration of wood products in market such as wood spoon in ice-cream cup, wooden serveware in restaurant and other such products replacing the plastic and other such high carbon footprint products.
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