Economics and Financial Feasibility of Major Pulpwood Trees Cultivation in Tamil Nadu

The main raw material for manufacture of paper is wood pulp which are mainly obtained from the pulpwood trees like Casuarina, Eucalyptus and Meliadubia. In Tamil Nadu, the cultivation of these pulpwood trees was promoted by two leading paper manufacturing industries viz., Tamil Nadu Newsprint and Paper Limited (TNPL) and Seshasayee Paper and Boards Limited (SPB).This study aims at estimating the cost, returns and financial feasibility of major pulpwood tree species cultivated in Tamil Nadu. The study found that the cost of cultivation of casuarina, eucalyptus and Meliadubia were Rs.1,76,939, Rs.1,60,593 and Rs.1,52,672 and the net income obtained from these trees were Rs.1,58,473, Rs.1,37,028 and Rs.1,33,831 respectively. Among these trees, Casuarina is more profitable and the results of the study concluded that the cultivation of these three major pulpwood trees are profitable and financially viable.