Tree Farming: How A ₹200 Plant Can Earn You ₹1 Lakh In Return

Last Updated:August 21, 2025, 12:27 IST

With sandalwood and mahogany emerging as the “green gold” of agriculture, farmers and investors are discovering how a modest ₹200 sapling can grow into a six-figure windfall

Mahogany wood is highly valued for its use in furniture, instruments, and shipbuilding, and also offers numerous medicinal benefits. (Local18)

In India, agriculture has long been viewed as a means of sustenance. But today, a silent revolution is taking root, literally. Tree farming, once considered a niche activity, is fast becoming a lucrative wealth generator for farmers, landowners, and even first-time investors. The buzz around this trend is fueled by the promise that a ₹200 sapling can yield returns worth ₹1 lakh or more over time.

The Rise of “Green Gold”

At the heart of this goldmine are trees like Sandalwood (Chandan) and Mahogany, often called “green gold” and the “king of timber.” A sandalwood sapling costs around ₹200–₹300, and though it takes patience—12 to 15 years to mature—it can fetch anywhere between ₹8–₹10 lakh per tree at harvest. Similarly, mahogany, prized for its rich timber, is increasingly being cultivated across India, offering an earning potential of ₹1 crore or more per acre over its growth cycle.

Why Tree Farming Makes Sense Now

Unlike seasonal crops, tree farming offers low maintenance, high demand, and long-term security. With changing climate conditions and increasing land pressure, many farmers are shifting from water-intensive crops to trees that not only bring better economic returns but also contribute to sustainability.

Steady Demand: Sandalwood oil is used in perfumes, Ayurveda, and cosmetics; mahogany timber powers global furniture and interiors markets.

Policy Support: Several states have eased restrictions on sandalwood cultivation, allowing farmers to grow and sell the wood legally.

Eco-Friendly: Beyond income, tree plantations help restore soil fertility, prevent erosion, and reduce carbon footprints.

The Business Math

Here’s how the economics work:

Investment per plant: ₹200

Maturity period: 12–15 years

Average yield: 300–400 trees per acre (depending on spacing)

Returns: ₹1 crore+ per acre over time

In essence, tree farming functions as a long-term fixed deposit with far greater returns—an asset that grows in value while requiring little day-to-day intervention once established.

Future of Wealth in Farming

Experts believe tree farming could redefine rural prosperity. As awareness grows, farmer cooperatives and agro-startups are stepping in to guide cultivators on plantation techniques, market linkages, and export opportunities.

For urban investors with unused land, this model also offers a chance to combine wealth creation with environmental impact making it an attractive proposition for a new generation that seeks both profit and purpose.

The Bottom Line

Tree farming isn’t about overnight riches. It’s about patience, vision, and sustainability. Planting a ₹200 sandalwood or mahogany sapling today could mean securing a financial windfall tomorrow while also greening the planet. As India looks toward eco-conscious growth, this could well be the farming goldmine of the future.

Swati Chaturvedi

Swati Chaturvedi, a seasoned media and journalism aficionado with over 10 years of expertise, is not just a storyteller; she’s a weaver of wit and wisdom in the digital landscape. As a key figure in News18 Engl…Read More

Swati Chaturvedi, a seasoned media and journalism aficionado with over 10 years of expertise, is not just a storyteller; she’s a weaver of wit and wisdom in the digital landscape. As a key figure in News18 Engl… Read More