Teak is considered a precious wood in India, especially grown in areas with warm and humid climate like Karnataka, Kerala and Tamil Nadu. Its entire yield takes about 20-25 years. After 20-25 years from one acre teak plantation, income of up to ₹ 10-15 lakh can be available, in which ₹ 5,000-7,000 per tree can be found. However, thinning (harvesting of weak trees) made in the first 10-15 years can also make a partial earning of ₹ 1-2 lakh. Also, wood prices increase with inflation, which gives good benefit in a long time. This costs an initial cost of ₹ 25,000-40,000 per acre, including the purchase of plants, land preparation and early irrigation-pest control. But there is a risk of weather, pests and illegal harvesting. Also, legal permission is also necessary in some states.
High Return FD: Safe and Easy Options
On the other hand, FID deposits i.e. FD are considered to be India’s traditional and safest investment option. Currently, some small finance banks are paying the highest interest on FD and their interest goes up to 8.5% annually (especially at an amount above ₹ 2 crore). While it is usually getting a return of 7.5-8% on FD of 1-3 years. If FD of ₹ 1 lakh is done on 8% annual return, then in two years it can be up to ₹ 1.16 lakh (with compound interest). It is completely safe, because the amount of up to ₹ 5 lakh is secured by DICGC. Also, partial withdrawal or premature closure is possible if needed.
Which option is better?
If we talk about short-term or 1-3 years of needs, then FD is perfectly suitable. Not only does it get certain returns, but also remains liquidity. In contrast, there is no immediate profit in teak plantation and investment is stuck for long periods. However, if an investor has land or he can lease it and has the ability to wait for 20 years, then the teak plantation can be a great option with a possible earning of up to ₹ 10-15 lakh per acre. But the risk in this is also much higher than FD.
What was the result?
If you want short -term safe investment, FD with 8% returns is a stable option. At the same time, if you want to invest in more profits and greenery with a long -term scheme, then the teak plantation is better. Election depends on your risk, investment period and target. Before investing in teak, consult an agricultural expert and check the reliable bank or NBFC for FD.
(This article is presented only for the purpose of general information. News18 does not give any type of financial advice. Be sure to consult a certified financial advisor or expert before making decisions related to investment.)
