Gold & Silver are considered to be one of the most common investment options for when it comes to small and medium capitals. But the Red Sandalwood plantations are attracting the investors vibrantly. This is because of the huge demand, shortage of supply, and increased cost of the Red Sandalwood.

Previously considered as illegal to grow, Red Sandalwood plantations were limited. But after pragmatic loosening of state clamps, it has encouraged commercial plantation of the Red Sandalwood. The investor rate is growing rapidly especially in the regions of Telangana and Andhra Pradesh.

One of the best examples of Red Sandalwood Plantation is Lahari Projects.

Lahari Projects deal with Red Sandalwood Plantation in the states of Andhra Pradesh and Telangana. The severe shortage of sandalwood (Chandan AKA Sri Gandham plants), is actively hitting user industries like perfume, soaps, and medicine. It has also encouraged quite changes in the rules on cultivation, encouraging the corporate sector to embark on the cultivation of the endangered wood species.

There are no clear statistics on the extent of sandalwood cultivation in India. However, it is estimated that there has been new cultivation on as much as 15,000 acres in majorly in southern states and some in the parts of western and northern India. The restrictions have been relaxed and the cultivation is now allowed and one may apply for a government subsidy for doing so.

The price of sandalwood has, correspondingly, seen a sharp rise, from Rs 1 lakh per tonne in 1990 to Rs 50 lakh per tonne in 2000 and has been consistently increasing since then. Whereas the prices of gold and silver frequently go up and down.

In natural conditions, the sandalwood tree takes at least seven years to produce scented heartwood and its growth is restricted due to climatic factors, soil, vegetation, fire, grazing, and human interventions. Under these conditions, a fully developed tree requires about 30- 35 years for harvesting. This makes it a better investment option when you are looking for a long-term investment option with greater profits.

This makes the Red Sandalwood cultivation a better option for investment compared to gold and silver.

For more information on Red Sandalwood cultivation and investment, contact Lahari Projects.


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URL : https://www.lahariprojects.in

Blog ID : 257189

Category : Business

Date Added : 28-7-2020

Tags : shortage | because

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