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Optimal Economic Return and Rotation Period of Large Scale Acacia Auriculiformis Plantations in Bangladesh

Md. Rayhanur Rahman
Institute of Forestry and Environmental Sciences, University of Chittagong, Chittagong-4331, Bangladesh

Mohammed Kamal Hossain
Institute of Forestry and Environmental Sciences, University of Chittagong, Chittagong-4331, Bangladesh

Abstract/ Executive Summary:

Acacia auriculiformis (Akashmoni) has shown excellent performance under plantations and appropriate for quick economic return even on soil of low fertility. The present study highlighted on the maximum economic return and rotation period in different age series of A. auriculiformis plantations at different locations of Chittagong during May 2017 to April 2018. At 13% discounting rate, the study revealed maximum NPV (457,993 Tk), IRR (48%), BCR (6.20), and Le (277,425 Tk) in 10 years old strip plantations. Besides, negative NPV (-27535Tk), IRR (-8%), and Le (-16888 Tk) were found in 4 years old block plantations. Here, both the plantation practices are profitable (BCR>1.00) except only for 4 years block plantation (BCR=0.6). However, if we consider only NPV, the rotation period should be fixed at 10 years and 14 years for strip and block plantations respectively. Therefore, the study revealed, if we consider IRR, BCR, Le to determine rotation interval of A. auriculiformis in Bangladesh, it should be fixed at 10 years and 12 to 14 years of strip and block plantations respectively. Hence, a large amount of production losses every year as crook and lean formation takes place due to use of low quality seeds and planting materials. However, different management practices is also required immediately for large-scale plantation programs of different regions of the country.

Keywords: Acacia auriculiformis, Net present value, Internalrate of return, Land expectation value, Benefit cost ratio

Location: Baroiyahdala National Park, Sitakundu, Ichamoti, Rangunia (Sheikh Rasel Aviry Park), Rauzan, Fashyakhali range, Ukhia, and Chittagong University Campus

Start Date: 00-05-2017

End Date: 00-04-2018

Program Area: Socio-economic and Policy

Commodity: Plant, Akash moni

Objectives:

The aim of the study is to discuss maximum economic return and rotation period in different age series of Akashmoni plantations in Bangladesh.

Methodology:

The survey was conducted in May, 2017 to April, 2018 in established existing strip, and block plantations of Akashmoni in two forest divisions of Chittagong (Baroiyahdala National Park, Sitakundu, Ichamoti, Rangunia (Sheikh Rasel Aviry Park), Rauzan, Fashyakhali range, Ukhia, and Chittagong University Campus). From each survey area 3 plantations of 4, 6, 8, 10, 12, and 14 years old were selected subjectively to get economic information. Analytical method for rotation period and economic return To determine the economic information the costs of raising seedlings in the nursery, plantation initiation, weeding procedure, gap filling, selection thinning, and overall management cost were collected from the specific forest offices and plantation unit of Institute of Forestry and Environmental Sciences, University of Chittagong (IFESCU). To determine the rotation interval and economic parameters of Akashmoni in strip and block plantations, various indicators such as Net Present Value (NPV), Internal Rate of Return (IRR), Benefit Cost Ratio (BCR), Efficiency Index (EI) and Land Expectation value (Le) for each age group.

Source of Information: J. Biosci. Agric. Res. 20(02): 1709-1716

Article Link (Online Journal): https://doi.org/10.18801/jbar.200219.208

Funding Source:

Budget:

Total Budget (Tk.) :

Achievement/Findings:

With increased deforestation rate, huge amount of barren areas are available for plantation programme where people of our country not concerned about how to manage such infertile lands economically. Nowadays, A. auriculiformis is planted massively in some of the hilly and unproductive areas to get quick returns of investment. In general, strip plantation is the best option in comparison to block plantation. It was also clear that no single method of analysis could be considered to determine the rotation interval, as this parameter depends on the objectives of the study. Under the present forestry management system, considering the economic criteria, the rotation interval of akashmoni species in Bangladesh should be fixed at 10 years and 12 to 14 years for strip and block plantation respectively. Question is that whether we should plant hundreds of species in reforestations programmes or to concentrate on research work to find a few main plantation species. It is also recommendable that instead of keeping the vast lands barren or treeless, Akashmoni can be used for plantations as it provides goods and economic benefits to the society in diverse way. However, same aspect of economical return for other fast growing species should be evaluated quickly.

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