Eucalyptus Cultivation Project Report, Cost, and Profits

Introduction To Eucalyptus Cultivation Project Report

Today, let us discuss Eucalyptus Cultivation Project Report, and Eucalyptus Economics, EucalyptusCost, and Profits.

Eucalyptus is a rapidly growing tree. Its size varies from medium to tall reaching 20 to 50 meters in height and up to 2 meters in diameter approximately. The trees are periodically cut at the ground level to stimulate growth (coppicing) and containing a wide range of soil and climatic flexibility. Because of their predictable growth and adaptability to climate and usefulness, Eucalyptus trees are increasing and have been regarded as important trees for man’s development. Annual rainfall of 800 mm is preferred. The species grow under a broad range of climatic and soil conditions from temperate to hot, sub-humid to damp, and from good to degraded soils. The genus Eucalyptus was first described and named by the French botanist  L.Hertitie. Several species occur naturally in the landmass of Papua, Eucalyptus plantations occupy more than four million hectares in 58 countries.

Scientific And Botanical Name Of Eucalyptus:

Eucalyptus globulus Botanical Name: Eucalyptus globulus Common Name:

Morphological Characters of Eucalyptus: Leathery texture leaves hang obliquely or vertically, and are studded with glands containing a fragrant volatile oil. The flowers are covered with a cup-like membrane (where the name of the genus is derived from the Greek Eucalyptus), which is thrown off like a lid when the flower expands. The fruit is surrounded by a woody cup-shaped receptacle and contains numerous minute seeds. The trees grow quickly and many species reach a greater height. E amygdalin (Labille) is the tallest tree, reaches as much as 480 feet, exceeding the height of the Californian Big Tree (Sequoia gigantea). Most of the species give valuable timber. Many species of Eucalyptus trees yielding essential oils and the foliage of some being more odorous than that of others. The oils from the various species differ from each other.

Present Situation Of Eucalyptus Plantations:

Varieties around 170 species of Eucalyptus were tried in India. E. Hybrid, a form of E. tereticornis called Mysore gum was the most outstanding and favored species. It is fast-growing, capable of over-topping weeds and coppices well. It has the ability to adapt to a wide range of edapho climatic conditions. E. Grandis, E. citriodora, E. globulus, and E. camaldulensis are the other species that are grown on a plantation scale.

State Forest Departments and Forest Development Corporation planted Eucalyptus over 1,000,000 hectares. In addition to this, around 6,000 million seedlings have been planted in private lands.

Read this: Tulsi Farming Project Report.

Growing Conditions Of Eucalyptus Plants:

Growing Season and Type:

  • In general, the “forest trees” are single-stemmed and a minor proportion forms the crown out of the height of the whole tree. Even though the woodland tree has a branch at a short distance above the ground level, “Woodland trees” are single-stemmed.
  • High temperature is required for Eucalyptus trees,  however, some species like E. Neglecta and  E. Crenulata, will tolerate semi-shaded areas.  They become accustomed well to a wide range of soils, from hot and dry sites to slightly wet as long as the area is well-drained.
  • Plant Eucalyptus fall in mid to late spring or fall, depending on the location and climate.  Should water the tree both before and after planting.
  • While planting, there’s no need to spread out the roots, as it could damage roots whil4 planting, as it should damage their sensitive root system. Backfill the area and lightly fill the soil to remove air pockets if any.

1.      Climate:

Climate Required for Eucalyptus Farming: Eucalyptus can be grown in a large variety of climatic conditions. However, it grows best in tropical to temperate climatic areas. In India, the Eucalyptus trees can be grown in regions with temperatures ranging from 0°C to 47°C.

2.      Temperature:

Another set of clones was accumulated in a shade house where temperatures ranging between 10 and 250C and with a mean temperature of 150C approximately. Plants with less photosynthetic rates were grown at 25/30 0 C have lower net when measured at 10 and 20 0 C.

3.      Water quality and production:

With increasing rainfall of 100 mm per year, Ground Net Primary Production (ANPP) increased by 2.3 Mg ha−1 per year. Eucalyptus is most likely inhibited by water supply, and that water supply affects the efficiency of resource use as well as biomass allocation to roots, stems, and leaves substantially. On a regional scale, according to our results, higher productivity could produce the wood in a 6-year rotation.

Eucalyptus Cultivation Practices:

Eucalyptus is a rapid growing, medium-sized to tall tree attaining 20- 50m in height and up to 2m in diameter. It is a strongly coppicing tree possessing a wide range of soil and climatic adaptability.  Eucalyptus is well known for its drought hardiness, even though annual rainfall of 800 mm is preferred. It grows under a wide range of climatic or soil conditions from warm to hot, sub-humid to humid, and from good to degraded soils.

Plantations Raised In Some Of the Important States:

In India, Andhra Pradesh, Bihar, Goa, Gujarat, Haryana, Kerala, Madhya Pradesh, Maharashtra, Punjab, Tamil Nadu, Uttar Pradesh, West Bengal, and Karnataka cultivates this in  1,32,000 hectares of land.

Economic Aspects Of Eucalyptus Plantations:

Growing Stock Assessment:

The growing stock and yield in the Eucalyptus plantation vary considerably depending on the site, the edapho-climatic conditions, and the inputs. The potential productivity is around 5 tons of biomass on average, but the average production is some 2.5 tons per hectare per year. The average yield for the private plantations is much higher.

Eucalyptus species are not consistent in their growth and the variation is considerably depending upon the conditions under which they are grown may vary depending upon the site, selection of species, and their provinces, and yields have varied considerably.

In fact, in India, almost 85% of the wood produced ends up as firewood. In the majority of cases,  people are not in a position to pay for it. In Karnataka, the Eucalyptus wood which is marketed is used either as firewood or as pulpwood by the paper and rayon industries.

The pulpwood has a maximum value of Eucalyptus wood. The Farm Forestry Sector annually extracts and sells 150,000 tons of pulpwood to the industries. Farmers sell the wood to secondary industries (brick and tile manufacturing units),  after reserving the quantity required for domestic usage. The timber of Eucalyptus is also used as poles for scaffolding, transmission lines, and construction.  Finally,  plantations of  Eucalyptus gave IRR of 49 to 62.5 % at 8 years, and for bunk planting the B.C. The ratio was 1:1.55 and 1:2.27 in eight years of age.

Social Aspects Of Eucalyptus Plantations:

Tremendous pressure has been exerted on natural forests in India as the population increases.  These are the main reasons for ecological degradation. Today there is enough food for people, but there is no sufficient wood to cook.

In  Gujarat, U.P, Punjab, Haryana, and Karnataka, the annual area planted for Eucalyptus has considerably reduced over the years. This is due to the disenchantment of the farmers, but not because of any ecological reasons,  as they were not able to get their expected price. Wherever the spacing has been spread and the rotation is approximately  9 years to produce larger material and the plantations are economical. Coming to Karnataka and West Bengal, the prices are remunerative due to demand from pulpwood industries. Group farming has helped the growers in West Bengal,  to obtain reasonable prices. The Cooperatives are formed not only to raise plantations collectively with proper inputs but also to ensure a remunerative market for the produce.

Read this: Frequently Asked Questions About Irrigation.

Ecological Effects Of Eucalyptus:


The three principal sites Devabal and Puradal (Shimoga) and Hosakote (Bangalore) were selected (Calder, 1991). The summary of the findings is:

  • At the Puradal site, the water use by young eucalyptus plantation was not more than that of the indigenous Dry Deciduous forest.
  • At both Puradal and Devabal sites, annual rainfall is equal to the Eucalyptus and indigenous forests (within the experimental measurement uncertainty of about 10%).

Nutrient use aspect:

Studies conducted in Eucalyptus hybrid plantations show that substantial amounts of nutrients are inputs to the soil through litterfall and stem flow.

Biodiversity aspects:

Eucalyptus plantations are economically grown in monoculture.  Eucalyptus plantations raised in the high rainfall zone in the past, indigenous species are allowed to come up after harvesting. The Eucalyptus was mixed with teak in Karnataka where eucalypt was mixed with teak after clear-felling moist deciduous forests, teak is allowed to grow along with the miscellaneous species which have come up from the rootstock. The Eucalyptus plantations are taken up in the barren areas of the dry zone at present.

Wildlife aspects:

There is an impression that Eucalyptus and wildlife do not go together. But it is true that the natural forest is a better habitat for wildlife. Eucalyptus plantation also supports wildlife. Birds are adaptable to still Eucalyptus plantations.

Utilization Of Eucalyptus:

Fuel: Eucalyptus was not considered a good firewood and timber species. This is being disproved.  Due to the shortage of miscellaneous species, people have found that Eucalyptus is a very good substitute for firewood because of its calorific value and moderate burning qualities.

Charcoal: Eucalyptus gives good charcoal. Eucalyptus wood is used for charcoal manufacturing to meet the semi-urban and urban demand wherever farm forestry has flourished.

Poles: Eucalyptus poles used in construction and dwelling houses, good for transmission purposes and are also used in work sheds and in mines.

Timber: Eucalyptus wood was not considered a good timber earlier. The quality of the timber depends upon the species and to-climatic factors. Considering the cost of Eucalyptus timber, it is found to be quite economical to use in low-cost houses.  It is also used in making furniture.

Rural small-scale industries: Rural small-scale industries are developing at a fast rate. Examples are brick making, jaggery making, pottery, tile manufacturing, lime production, dyeing, smithy, etc. All these industries require firewood or charcoal provided by Eucalyptus plantations.

Honey and Oil: Many species of Eucalyptus species are rich in pollen and nectar. The beekeeping business is profitable in India hence this activity is improving. Leaves of Eucalyptus globulus and E.citriodora are used for the extraction of oil.

Paper and pulp: It is the most important use of Eucalyptus wood so far in the pulp and paper industry. The demand for paper and pulp is increasing day by day.

Eucalyptus Cultivation Project Report, Economics, Cost And Profit Analysis:

Eucalyptus Cultivation Project Report.
Eucalyptus Cultivation Project Report.

The Eucalyptus farming model shown below is estimated for 1 acre of land. The charge of the land is not included because it depends on the land, whether it is rented or owned. Transport,  post-harvest management charges may vary depending on the location of the farm and the local transport structure. It is to be noted that there could be other hidden costs of the entire process. 500 trees can be accommodated in one acre.

Biomass plantation of Eucalyptus requires the same high-density planting pattern as the Eucalyptus timber plantation.  Approximately 500 plants in one acre.

The cost of one plant is 30 Rs. By planting Eucalyptus Clones, we will get wood from nearly 300 to 400 kgs/tree.

Cost of 1 kg of manure (urea+ Phosphate): Rs. 30.00

Labor cost per day: Rs 250 – 300

Cost of arranging the drip irrigation system for 1 acre of land: Rs 45,000- 60,000

Cost of 1 unit of power consumption on slab rate: Rs 2.50/unit < 30 units; Rs 3.70/unit for 31 – 100 units; Rs 4.85/unit for 101 – 200 units and beyond this it is Rs 5.85/unit

The average cost of other insecticides and the pesticide mixture with spray per kg: Rs 900.00

For water supply the cost of centrifugal pump settings depends on the manufacturer company and the capacity of the pump: Rs 5500.00.

Eucalyptus Cultivation Material And Labour Charges per 1-acre land Investment (In Rs)
Plants cost per 1 acre (clone plants) 10,000.00
Planting material cost 4000.00
Manure and fertilizer cost 6000.00
Insecticide and pesticide cost 3000.00
Labor cost @ 30 days for 3 persons 18,000.00
Power requirement @ 4 units per day 5,000.00
Tube well  pump cost for one acre 30,000.00
Drip irrigation arrangement 50,000.00
Pumphouse 20,000.00
Agriculture equipment 10,000.00
Soil preparation 5000.00
 Total cost 1,61,000.00

Yield And Returns Of Eucalyptus Cultivation:

60%  of the growth of Eucalyptus established in the first 10 years. Most of these are growing at a rapid rate and attains a height of about 30 to 180 feet or more depending on the varieties.

Eucalyptus is a moderately large tree in general and attains a height of 40-60 feet and a diameter of 40-45 inches.

The trunk of the tree is generally straight and constitutes half of the total height. One tree costs, a minimum of Rs.1800-2000 after 5 yrs.

For 500 plants in one acre, we can get approximately Rs. 8,00,000 to 10,00,000. The profit is 8,39,000.00 (10,00,000-1,61,000).

Eucalyptus Plantation  Loans And Subsidies In India:

All the Agricultural Developments Banks in Punjab advances a loan amount of Rs. 1,16,000, in eight equal yearly installments for 500 Eucalyptus planting in one acre.

NABARD provides post-harvesting loans at concessional rate of interest to small farmers up to Rs 3,00,000/-

In case if you are interested in this: Hydroponic Nutrient Chart.


  1. I Want to start Eucalyptus farming in 20 acre at Moradabad in UP. can share information about Seed varieties.and also I need a agency which can do it with us.

  2. how can i sale the eucalyptus tree ??
    i have trees in chennai
    i couldn’t find any vendors here??
    can you please help me by providing vendors??

  3. i have 20 acres of eucalyptus trees for selling in andhrapradesh, near vishakapatnam , i couldnt find any vendor, can you help me to find the vendors for buyign at good price


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