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Thursday, 16 May 2013

Opportunity to sale the Aged and Non-productive Rubber trees from the Plantation

  One prominent rubber grower of my area has recently sold his aged and non-productive rubber tree from his plantation. Although, total amount he received through selling of these aged and non-productive rubber trees could not be comparable to the other popular timber like teak wood but what he got is enough or even more than enough to raise new plantation after felling of these old rubber trees from the plantation.
  There was a time when people would think the faith of his/her old plantation that is to say that grower is some what worried where he would dispose his old rubber trees once the rubber tree attains in the declining productivity stage.
But now there’s no dearth of buyers for old and matured rubber trees, one public undertaking of the state is reported to be dealing with manufacturing of finished furniture from rubber wood is also said to be sourcing the rubber wood from the rubber growers of the state.
  In addition, there’s also mushrooming of private dealers who are in search for opportunity to purchase the old and non-productive rubber trees for further selling the product or timber or rubber tree log to the furniture makers available in the state. 
 However, let us see the plantation details of the rubber grower who recently sold his old and non-productive rubber trees to the local dealer.
 Plantation Details:
  a. Year of plantation: 1979
  b. Year of initiating of tapping: 1987
  c. Area of plantation: 3 ha.
  d. Varieties of rubber  tree planted: GT1* and RRIM-600*
  e. Numbers of standing rubber trees in the plantation: 1200
  f. Year in which tapping stopped: at year end of 2012
  g. Total tapping years: 25 years
  h. Average girth size(at ground level) of each rubber tree: 36 inches
 Sale details of the aged rubber tree from the plantation
  a. Dealer to whom rubber trees sold: Local dealer
  b. Sale price of rubber tree
    1. First lot of 600 rubber tree : 200000
    2. Second lot of 600 rubber trees : 350000(deal yet to be closed)
  c. Total sale price of 1200 rubber trees : 550000( including item no.2)
    The amount he earned through selling of old rubber trees as said may not be comparable to the other popular timber yielding tree of the state but again, what he received in return is well above the requirement for raising new rubber plantation on old 3 ha plots of land.
     The fact of the matter is; raising of scientifically managed 1(one) ha rubber plantation is well within the range of 110000(in Indian currency) therefore, raising of 3 ha new rubber plantation would require only 330000(3 ha X 110000). And, he is still left with a sum of rupees 220000(550000-330000) which he can expend in other family purposes.
 Although, right time for netter price realization is yet to come but price is expected to increase in future due to the demand of the finished rubber wood furniture. However, rubber growers should make it a point that they should have valid land document of their plantation that may be required in future for hassle free selling of their aged and non-productive rubber trees
      * Name of rubber variety referred by the grower may not be true due to lack of awareness in rubber variety by most of the rubber growers.