"Shaile shaile na maanikyam mautikam na gaje gaje Saadhawona hi sarvatra chandanam na vane vane"
1. What do Agarwood and Sandalwood symbolize?
Agar incense and Sandalwood scattering fragrance is a mark of purity and an integral part of the religious practices of Indians. The Oud and Sandalwood fragrances are considered universally as exhilarating and even spiritually elevating. Both are sacred items used in temples and shrines. A mere presence of the incense of Agarwood and the paste of Sandalwood fragrances wade away the negative energies and blissfully presents positive energy around.
2. Are Agarwood and Sandalwood plantations legally permitted to grow by private owners?
For many years, Agarwood and Sandalwood plantations were Government property. These plantations were legally permitted to grow even on private lands, following an amendment to the forest rules in 2002. Consequentially, government permissions or approvals are not necessary for Agarwood and Sandalwood plantations on private lands.
3. Do we read there were restrictions on the private plantations of Agarwood and Sandalwood?
There are no restrictions, as aforesaid.
4. Are the plantations of Agarwood and Sandalwood, are legally permitted to grow on private lands in Andhra Pradesh? Do they have approval from Union and Government of Andhra Pradesh?
As reiterated, the plantations of Agarwood and Sandalwood on private lands are now legally permitted as per an amendment to the forest rules in 2002. Further, when we sought a clarification from the Andhra Pradesh Forest Department under Right to Information (RTI) Act, we received a reply from the government stating that though in the past Agarwood and Sandalwood were government properties, the rules were amended in 2002 under section 108 of Karnataka Forest (Amendment) Act of 2001, allowing the private landowners to cultivate these plantations in their lands.
5. Is it possible to harvest the Agarwood and the Sandalwood in 10 to 15 years, as we heard that the harvest takes around 25 – 30 years?
So far we have only heard, and known Agarwood and Sandalwood grows in the forest atmosphere. Sandalwood is a semi parasite crop and depends on host plants for most of its nutrients, this is not readily available in the forest, and therefore the growth takes time. Adding to this is the Government policy which restricts cutting down of living Agarwood and Sandalwood trees in Forests, unless in exceptional circumstances. However, the scenario in organized cultivation is different. Host plants, water, and fertilizer are applied to achieve the yield in 10 years for Agarwood, and 12 for Sandalwood.
6. Do some people say returns will come only after 20-25 years?
In the organic cultivation, the harvest on Agarwood yields from 10th year, and Sandalwood yields from 12th year onwards. In forest plantation, it will take more than 25 years. (Because Agarwood requires a fungal infection and Sandalwood requires different host’s plant for its healthy growth, in a forest area, it may not be possible).
7. Does Chandan Valley sell only plots? What are its plans?
Chandan Valley is selling only plots, and after the customer purchase plot @ Chandan Valley, the customer receives a gift of Agarwood and Sandalwood plantations, which manages from nurturing to yield. The yield on Agarwood starts from 9th year onwards and continues till 12th year, whereas the Sandalwood yield is from 12th and continues till 15th year. The yield income shares are in a proportion of 50%: 50% and the company take 50% of the income towards maintenance. The customer reserves a right to sell their plot, any time after the registration.
8. What is the role of a customer?
Customer’s role is to buy a plot, authorize Chandan Valley for cultivation and maintenance of Agarwood and Sandalwood Plantations for a period of 15 years, and share the yield income proportionately on a 50%: 50% basis.
9. Is plantation income, exempted from Tax?
The income-tax rules changes every year. However, presently as per section 10 (1) of the Income-Tax Act 1961, the income earned on the Agarwood and Sandalwood Plantations is exempted from income-tax.
10. Why Chandan Valley takes the 50% profit share?
Once the customer authorizes the management to cultivate, they grow the trees, by applying the required nurturing processes, maintenance, security, and marketing, and meticulously accomplish the detailed tasks, and takes 50% of the yield income towards the expenses incurred. In other words, after the customer purchases plot, the entire maintenance during the period is managed by the company, and the customer takes the benefit of the yield income earned. Please contact the designated person of the management or the marketing head for more details.
11. Does an Agarwood and Sandalwood plantation earn cores of rupees as income?
The demand for Agarwood and Sandalwood is rising due to changing trends in the people’s fashion, health, religious and spiritual needs, where the utility of these woods is an integral part. There is a price rise of these woods since 1990, and the trend continues in the years ahead. We foresee that an acre of cultivation will yield 8 metric tons (MT) of Agarwood and Sandalwood. There is enormous demand, and the supplies are much below to meet the demand forecast.
12. Are the investments from customers for plots are secured?
The maintenance of the plots shall be managed by Chandan Valley, against an authorization by the plot owners, after they are purchased. For the next 15 years, we maintain the plots without any expense to the customer. Further, by the end of 15th year, plot value appreciates so as the 50% share on yield income, thereby to the customer, the investment is secured.
13. When will be the registration done?
After remitting the complete payment, registration will take place.
14. Is the title clear?
Yes, Title clearance confirmed by legal representatives.
15. Can we see the land papers?
Yes, the designated team head shall give you the papers personally.
16. As owners, can we construct a farmhouse, on our own expense, in our allotted piece of land?
Though customers are the owners of the allotted piece of land, no constructions are allowed, as it may affect the flora and pristine nature, due to the movement of vehicles, causing pollution. After 15 years, customers can construct.
17. Can I sell my plot, during mid-way in the 15-year term?
As an owner of the plot, you are free to sell the ownership. However, the incoming owner has to abide by the agreement executed by the 1st owner authorizing Chandan Valley to main the plot until the yield period is complete.
18. What is the quality of the site
We selected the site after satisfactory soil testing and analysis. We found the site is suitable for Agarwood and Sandalwood farming.
19. Can we have a choice in selecting the land allocated to us?
An up-to-date copy layout copy and allocation status is available at the time of booking the plots. Allocation is done on the first-come-first-serve basis to maintain fair and transparent ownership.
20. Whom do I consult / approach in case of legal conflicts?
Complete legal scrutiny of the project was with optimum care, before applying to DTCP, RERA and other authorities before releasing the layout. However, we welcome customers for a verbal discussion with the project owners and other designated members. All the legal conflicts are subject to Vijayawada Jurisdiction.
21. Who does the maintenance of the plantation?
Chandan Valley management takes care of maintenance.
22. Is owners of the plots are members of the Athidivanam (club house)? Is a complimentary stay offered?
Yes, the customers of Chandan Valley projects are members of Adhidivanam (club house). They are offered two days & one night complimentary stay in a financial year. However, the accommodation is against advance intimation and subject to availability.
23. What is the departure plan of the venture?
After completing the harvesting of the Agarwood and Sandalwood plantations, customers will possession of their plots. However, interested customers can approach the project owners for another term of harvesting, subject to the applicable terms and conditions at that time.
24. Are there any discounts or price negotiations?
The offer price is non-negotiable and fixed.
25. Can we buy a plot of land without Agarwood and Sandalwood plantations on it, for construction?
The very purpose of this project is to pass on the benefits of the final crop to the plot owners. Hence, there shall be no construction activity, up to 15 years.