Teak Information

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Pricing of Teak

Prior to harvesting, it will be necessary to decide whether to sell the raw material in log form to local and export markets, or to process it for added value in a sawmill For the moment, processing capacities seem to be higher than raw material supply potential.

During the plantation establishment period, and before thinning is begun on a larger scale, the economic value of plantations can only be evaluated by estimating the accrued commercial value of trees in the growing process.

Our MAI is estimated at a conservative 12 m3 per hectare based on experiences in other locations and in Costa Rica. On some sites an annual growth rate of 20 m3 per hectare or higher has been observed (Camacho, 1998; de Camino, Alfaro and Sage, 1998; Herrera, 1998).

Prices of teak very considerably depending on wood quality and whether you are dealing with plantation grown wood or old growth teak which is very expensive at this point. Our estimates are based on actual market prices of plantation teak(US$350 to $650 per cubic meter free on board [FOB] depending on diameter and wood quality)and are based on recent regional experiences.

Yearly average price of teak logs for girth class of 120 to 150 cm in India (Old growth teak)
Year Price per m³ (Rs) Rs to US$ Ex Rate Price per m³ ($US)
1970 646 7.5000 $86
1971 810 7.4919 $108
1972 963 7.5945 $127
1973 850 7.7420 $110
1974 1,390 8.1016 $172
1975 1,256 8.3759 $150
1976 1,511 8.9604 $169
1977 1,583 8.7386 $193
1978 2,809 8.1928 $343
1979 2,965 8.1258 $365
1980 2,965 7.8629 $377
1981 3,919 8.6585 $452
1982 4,603 9.4551 $487
1983 4,840 10.0989 $479
1984 6,862 11.3626 $604
1985 7,801 12.3687 $630
1986 8,359 12.6108 $663
1987 6,075 12.9615 $469
1988 not available 13.9171 not available
1989 9,964 16.2255 $614
1990 13.449 17.5035 $768
 
Source: Bebarta (1999).