Tall claims on teak yields
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21/01/1999
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Business Line (New Delhi)
Study : Based on the all-India yield tables and projected internal rate of returns, a recent paper prepared at the Kerala Forest Research Institute (KFRI) has questioned the economic viability of private sector teak plantations to generate the high returns promised to its investors. Taking the case study of two leading teak plantation schemes launched by private sector companies, the paper points out that while the internal rate of return (IRR) on investment of financial schemes ranges from 15.3 to 15.7 per cent, those on teak plantations are estimated as high as 25.9 to 34.1 per cent per annum.