Agricultural lands as investment
- 632
- 10
-
- Last Comment
Recently, I came to know about these Red sandal wood agricultural projects where you buy land and the project owner take ur land for lease and maintain the sandal wood trees for 12 years and give income from selling sandal wood .
Similar projects Seen around mango farms etc.
- Sort By
@third.i.financial.advisors chiguru like concept.
Those farm projects which you see appear rosy, but it's not guaranteed to pay like they forecast. There was a teak plantation investment scheme a few years back and it was a big scam here in Bangalore.
If thinking of buying agricultural land, buy it and plant some trees with a fence and it will probably give you more realistic returns in a long run.
Atleast this is my view.
Red sanders growing in chittoor nellore kadapa traingle forest area are A grade & they only will fetch rates because those soils contain uranium, cadmium, zinc etc which gives high medicinal values to wood. This type of soil is nowhere available in the world. Buying or smuggling original logs is also difficult due to heavy police/forest officers patrolling. Some B grade logs will fetch in range of 50 lakhs per tonne. Red Sanders grown in normal farms don't even classify as E grade Red sanders & no one will buy them. Normal sandalwood or sri gandham or Indian sandalwood have good rates due to oil produced by them, which is used in soaps, cosmetics industry and takes 15-20 years for tree cutting. All that Pushpa movie has shown is highly inflated rates.
'A' grade red sanders gets quoted at Rs 1.95 crore a tonne (business-standard.com)
Location?
dont invest in these things .... they love you till you pay them money ...
All these are scams. Don't fall for it.
I want to buy some agricultural land, but they quote 30L-50L when they hear I am from Bangalore 
Want to buy and attempt a natural farming model, but price is a major deterrence..
Technically, you can't purchase agricultural lands if you aren't a farmer in most states in India.
So, plan accordingly.
Those farm projects which you see appear rosy, but it's not guaranteed to pay like they forecast. There was a teak plantation investment scheme a few years back and it was a big scam here in Bangalore.
If thinking of buying agricultural land, buy it and plant some trees with a fence and it will probably give you more realistic returns in a long run.
Atleast this is my view.
dont invest in these things .... they love you till you pay them money ...