Business Opportunities in Agriculture: 150 Field Interviews (Book)

Mr. T N Vishukumar - Engaged in sandalwood and teakwood farming

Register

Click Here!

editorialteam

New Member
Engaged in sandalwood and teakwood farming. Also provides consultancy


“Sandalwood farming is money spinning business but it has a constant threat for the theft! As the sandalwood trees grow it catches the attention of the thieves. Precisely after 6-7 years I experienced theft in my farm. Using technology to safeguard and monitor the trees I had to put up fence, CC camera, 24/7 security and dogs etc. It would have cost roughly Rs. 50-60 lakh for 4.5 acre farm. So to continue farming sandalwood I blended it with real estate as my father is a land developer for past 30 years working in and around Tarikere,” says Mr. T N Vishu Kumar, agripreneur. He hails from Srigandha Belegararu, Chikmagalur district, Karnataka.
Vishukumar4.jpg
Mr. T N Vishu Kumar

“The land my father purchases and sells to buyers take 12-13 years for the development and house construction. So I thought of planting sandalwood saplings instead of keeping the land vacant! It became a win-win situation for me and the land owners as the maintenance cost and revenue would be shared amongst the two of us,” he elaborates. In 4 acres area, 100 sites are developed. On each site 24 sandalwood saplings are grown. Presently these are nurtured with water and manure for which land owner pays Rs.500 /month but as the sapling grows to 2.5 feet plus height then it would be monitored under strict security system. “Then we shall increase the maintenance cost to Rs. 1000/month. After harvesting the sandalwood trees (15 years old) the revenue shall be shared as 20% for us, 10% for the Government and 70% to the land owners,” he asserts.

The model proved successful for Mr. Vishu Kumar. “Last year I purchased 10-12acres in town limit and 250 sites are made out of it. 20 sandalwood saplings are cultivated in each site. This year I am more confident hence purchased 30acres and 123 (100x100ft) sites are made. Each site has 100 sandalwood saplings,” he adds.
Vishukumar1.jpg
Sandalwood and teakwood are the complementary trees that grow very well in support of one another. Both being forest trees are draught resistant and need less care in terms of production. “In the first year of the plantation in 2005, the neighbouring farmer grew vegetables in my farm using farm yard manure and natural pest control techniques. Consequently the soil became fertile and sandalwood and teakwood saplings grew well,” he shares. In order to safeguard the saplings from theft, “A written complaint was filed. Later to which police and forest department takes 3-4 rounds. I have lost some trees but it was the stepping stone in my learning curve and new business model,” he adds optimistically.

Cattle manure is sufficient for the plants. “In addition we use arecanut skin for mulching and to support earthworms. Sandalwood leaves are tilled by tractor so that it becomes manure. Other than these we do not use any manures. Irrigation is done by drip,” shares Mr. Vishu Kumar.

Usually sandalwood trees are harvested after 15 years but Mr. Vishu Kumar plans the harvest in 20-25 years. “I am expecting Rs. 2-2.5lakhs/tree,” he states. All the saplings were bought from forest department at Udupi. “They sell at subsidized rates.”

When asked about the latest rules on cutting the sandalwood trees, he responds, ““New rules include that we can take permit and cut the teak but for sandalwood we have to give it to government organizations like KSDL, handicrafts, forest department etc. Forest department takes the charge and auctions it. After harvesting they keep 10% and give 90% money to us that is shared with land owners. Precisely for sandalwood, it is best to do a buy back agreement with government. They will see matured trees and cut it at the suitable time.”

Speaking about long waiting period for earning some revenues, he clarifies, “We did understand this concern of the land owners. Therefore we have planted mango, sapota, coconut, amla and 12 varieties of jack fruit such as rudrakshi jackfruit. One tree each in one land site along with sandalwood. At the moment we are removing the flowers because we want the plants to gain strength but once it starts fruiting entire produce shall be given to site owners. Besides, post three years seeds are obtained from sandalwood plants. The seeds are sun dried and sold in the market at the approximate price of Rs.400-500/kg. Keeping the processing cost we shall give rest of the money to the land owners.”

In future Mr. Vishu Lumar wants to continue to develop land properties and grow sandalwood saplings. He has gained expertise that he shares with others as in consultancy. It began with a project in Madhya Pradesh state of India and now he goes international with a project in Africa and Thailand.

Prior to sandalwood farming, Mr. T N Vishu Kumar was in arecanut farming and business in electronics. Unfortunately he suffered enormous loss in 2003-2004 in both the ventures. “Eventually I took some time to find about the farming intricacies of teakwood and sandalwood then finally in 2005 I started the cultivation in my own 4.5 acres farm. It was a great learning experience and gave me the confidence to think out of the box and merge it with real estate. It was the right decision at the right time. I strongly believe agriculture has all the power to make up for all the loss and lead towards prospective life!” he signs off.


Contact Details:
Mr. T N Vishu Kumar
Srigandha Belegararu, Kodicamp, TarikereTaluk, Chikmagalur District, Karnataka
Phone: 97391-21848
E-mail: sandal.vk@gmail.com
 

Business Opportunities in Agriculture: 150 Field Interviews (Book)

Top