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Friday, 7 February 2014

Hey! One rubber plant costs only Rs.78.00 for 30 years.

            This may feel and sound surprising and awkward too. Why not? As one productive size or age of rubber tree is costing only Rs.78.00 for long, I say long 30 years of time. The fact of the matter is; one rubber plantation owner or rubber grower as you say has recently leased out his rubber plantation. Not exactly the whole plantation but a portion of his plantation consisting of 150 numbers of productive rubber trees to someone from the same area for Rs.3,50,000?-( INR) only for whole productive period of the plantation that is roughly 30years.
               What happened to him for his abrupt move for leasing out of the part of the rubber plantation is; he has to get his daughter married off so he requires immediate liquid cash which presently he does not have. So what the option he chooses is leasing out of the rubber plantation and getting the negotiated liquid cash to get his daughter's marriage ceremony taken place with glitterati.
               My reaction, although not direct reaction is; may be the plantation owner has actually miscalculated and fallen to the trap of long years of indebtedness to that person who took the lease from him. I was little restless, I don't know why but feeling something like cheated. Of course, my feeling and thinking in that direction may not be right also.
               Therefore, I asked someone very much known to me who is in fact wealthy person having large acreage of rubber plantation under his possession. But what he replied is astonishingly different to my perception. He replied that the rubber plantation owner is in profitable side than the person who took the lease of the plantation even for whole productive years.
               I could not believe his statement due to the following comparison that I tabulated as under:-
Plantation owner who leased his plantation
Person who leased the plantation
Sl.No
Particulars
Rate
total
Particulars
Rate
total
1
Leased amount

350000
a) Average latex yield per tree
50ml

2
Lease time

30 years
b) Per month yield in alternate day
50x15days
750ml
3
Nos. of rubber trees leased

150 nos.
c) Per year yield of each tree
50ml x 15days x 10month
7500ml
4
Earning as per leased amount per rubber tree for 30 years
350000/150
2333
d) 30 years yield of each tree
50ml x 15days x 10month x 30years
225000ml
5
Cost of each rubber tree for 30 years
2333/30
78
e)  30 years yield of each tree in Kg. (latex)
(50ml x 15days x 10month x 30years)/1000
225Kgs
6
Cost of each rubber tree per year
78/12
6.5
f) Yield of each  tree in  Kg (dry)
225Kgs/3.33Kgs
67Kgs
7
Cost of each tree per day
6.5/30
0.22
g) Return of each tree in 30 years
Rs.150 x 67 Kgs
10050
8



h) Return of 150 tree in 30 years
Rs.150 x 67 Kgs x 150 nos. x 30 years
1507500

So, what do you say by seeing the above table? I hope it is absolutely showing that the person who took the lease is in much more profitable side than the plantation owner who may feel happy by getting Rs.350000 at once but over a period of time he is in fact looser, looser by Lakhs of rupees which is certainly a cumulative loss to him.
                  What precisely I want to comment on here is; where have all these banks or bank branches have gone? Could not the grower be saved from such awkward financial situation by these bank branches? Where have all those marketing or field officer of different banks have gone where a hapless man could have been rescued from the prolong indebtedness.
                  This Rs.350000 money if ever availed from any rural or nationalized banks, this could have been repaid by the rubber plantation owner within, I would say within 10 years time which could have been much more better than the leasing of plantation for 30 years period.