The paper examines the profitability of teak ( tectona grandis, Lin. f)
plantations under the existing system of management in Bangladesh. The Forest
Department has fixed 69 years as the rotation length for teak on all sites.
Land expectation values have been calculated on the basis of the Faustmann
formula and preliminary yield tables for three site qualities. They have been calculated
on the assumption that the sites would be used for teak plantations for
an infinite number of 60 year rotations. The sensitivity of results to changes in
the planting and overhead costs and in yields was also calculated.
The result indicates positive net returns for sites of qualities I to III under
all cost conditions at an eight percent rate of interest. At thirteen percent, sites
of qualities I and II show a positive result but those of quality III indicate a net loss
Land expectation values are not found to be a convenient index of profita