Is It legal to grow/sell Sandalwood? Does Govt Of India permit this?

Sandalwood trees were the property of the government for years, but now the rule has changed. As per the Section 108 of the Karnataka Forest (Amendment) Act 2001, sandalwood tree grown in a specific land is the property of the owner of the land. Hence, anybody can grow sandalwood without any apprehensions.The government is also giving subsidy to grow sandalwood through State Medicinal Plants Authority and Horticulture Department. Kindly check the proofs provided below: The Karnataka Forest Amendment Act of 2001- Sandalwood http://www.ndtv.com/video/player/news/sandal-the-lost-treasure-of-india/32497 http://www.business-standard.com/india/news/corporate-sector-enters-sandalwood-plantation/431370/ http://www.hindu.com/2008/08/08/stories/2008080856441100.htm http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/article2028212.ece http://www.asiantribune.com/news/2010/05/24/sunday-celebrity-sandalwood-scientist-ananthapadmanabhan-works-royal-tree-restorati Can Sandalwood cultivation really fetch crores of rupees? Yes it can. Kindly find the following increase in price since 1990 till 2010. The prices mentioned below at per metric ton (mt). As per our project analysis we would be able to fetch upto 8 (mt) from each acre of cultivation 1) Indian Sandalwood has huge demand worldwide and the supply is currently way under the demand. 2) 100 gms of branch wood (sandalwood) costs Rs 900 (source : Mysore sandal soap, Karnataka) 3) 5 ml of sandalwood oil costs Rs 1350 (source : Mysore sandal soap, Karnataka) Year 1990-1991 1991-1992 1993-1995 1996-1997 1998-1999 1999-2000 2000-2001 2001-2002 2001-2003 2003-2004 Price in INR per(mt) 1,78,500 2,66,000 3,32,500 6,12,500 7,77,000 7,70,000 10,81,500 12,88,000 19,11,000 20,54,500

Jan-2005 July-2005 April-2006 May-2007 Dec-2007 Nov-2008 Sep-2009 Aug-2010

29,85,500 32,62,000 36,90,785 34,43,650 37,79,475 38,50,000 40,25,000 55,35,000

Is it possible to harvest Sandalwood in 15 years as we heard it takes around 35 - 40 years? So far we have only heard and known Sandalwood which was naturally grown 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 Govt policy which restricts living trees being cut down in Forests. Only dead Sandalwood trees in forests can be taken for production. However, the scenario in organized cultivation is different. Host plants, water and fertilizer management are properly done to ease Sandalwoods growth thus achieving optimum output within 15 years. There were other similar projects in the market involving Teak-wood which failed, how is yours different? Not really. Teak-wood is considered the king among Timber which is used in every Indian household and as a tree it has never failed. The people and their greed had caused an alarming situation for Teak-wood plantation. We need to understand that there is a huge difference between an agro based farming and just planting few trees in a small real-estate plot which is meant for future occupation . The real-estategiants who started this disaster had little or nil knowledge in teak cultivation. The only intention we sensed was money minting. The major aim was to promote real estates and land sales by showing an added advantage of income from teak-wood. For them cultivation/plantation was just an added benefit to attract the customer. The real-estate owners benefited from the land sales and never gave any professional care for the crops. We have come across other customers who have paid some X amount for a tree to companies without knowing as to where the plantation is being done, who does the plantation and what is the security being given for the invested amounts. When customers fund individual/companies whose real intention/income source is not from agriculture/plantation then the results are fatal . However, for the error made by humans the tree gets blamed. This scenarios has caused such an adverse effect and mind-block for individuals today that teak-plantation (in fact any plantation) has become a talk of the town as being an unfruitful investment. The reality is different. If Teak-wood is being used in every household and we pay good amounts to buy them then someone-somewhere is doing a good plantation. An investment involves your money being entrusted into someone elses hand for which you expect some returns and it always involves risk and we are no exception. However what one needs to analyze is the amount of risk involved compared to the reward compensated for the risk taken. In general everyone only concentrates on the outcome projected for an investment. The most important point/s which people tend to forget while investing are: 1) Where is your money being invested? Does that source has the capacity to achieve profits as projected? 2) Does the instrument/person/company, who do the project, have the capacity & expertise to generate income from your investments? 3) What is the security being provided for your investments and is it justified? 4) What, where and when is the benefit for the person who handles your investment? 5) Does the investment plan provide a profitable & anytime exit plan for you? We at Village Organics have an answer for the above questions : 1) We are investing your money to cultivate Indian Sandalwood which is the top sold in its kind world over and its capacity to generate in crores is beyond doubt.Consider checking the next question (Q.no 3)for details. 2) Village Organics is a 100% agro based company and the team involved consists of scientists, biologists, horticulturists and farmers. Our passion and area of expertise is Sandalwood farming and we are working towards its restoration.Our Chief Executive Scientist(CES)Dr.H S Anantha Padmanabha has done successful plantation in many counties one being Australia wherein TFS (Tropical Forestry Services of Australia) has grown Indian Sandalwood on more than 35,000 acres of land involving thousands of customers. If anyone in this world can cultivate Sandalwood we challenge that we would stand the top amongst them. 3) (a) Land is the only immovable instrument involved in farming. All other assets like, saplings, borewells, drip, security walls, sump, guesthouse including, the time, effort & expertise of the team is invested on this unmovable asset and this instrument called land is being registered in the name of the investors.

(b)We are offering the land with all amenities and the expertise of our team at the base price which we guarantee that an individual cannot find anywhere else. Owning an individual piece of land today is the dream of many however the price offered in the market is way above the reach of a common man. Providers offer one SqYd at some XXX amount and add 100-500 rupees per SqYd in the name of development charges. Some even go in the name of offering one acre of land at a said price and only give 4000 SqYds deducting 840 SqYd (one acre of land = 4840 SqYs)in the name of development charges, wastage charges for roads/amenities etc. We are charging a straightforward cost which is applicable to do this farming at the actual cost incurred to do Sandalwood Farming with State of the class technology, expertise and without compromising on cost or Quality. As a company we will be selling this property between a price range spreading between Rs 116 till Rs 285 per SqYd based on our STEU-UP pricing module and we guarantee that even at our final price (Rs 285 per SqYd ) this purchase is a very fair deal. Your core investment has the full value if liquidated (sold back) at any given time. This single factor reduces the risk and maximizes the investment security. 4) This is a very important point to be carefully examined before investing into any Investment source. An individual/company can never get you profits for your investment unless they themselves are properly benefited. This applies even at ones workplace. WHAT : Village Organics gets reasonably benefited for the efforts which the company & its team put in. We get rewarded 100% of the benefits for the first four years thereafter we have a 50% share from the profits till the end of the project. WHERE : We get the profits from the short term crops like raggi, watermelon, vegetables etc. From the fifth year we get benefited from the mango yields till the end of the project. Tenth year we get a bonus in the form of the profits from Teak wood and at the end of the project we get a huge share from the Sandalwood harvest. WHEN : We get this profits right from the beginning of the project till its end and only when we do our work. 5) Absolutely, since the investment is done on the base price required to do farming the investor has every option to exit anytime, with a benefit of course,Village Organics adopts the step-up pricing module which starts from Rs 116 per SqYd and increases it to Rs 125, Rs 150, Rs 165, Rs 185, Rs 210, Rs 235 and finally to Rs 285. The increment of pricing purely depends and is proportionate to the development completed in the farm. This helps and investor to gain initial benefits based on the Risk vs Reward ratio calculation What is the plan/proposal of Village Organics? Village Organics is an 100% Agro based company and consists a team of Scientists, Biologists , horticulturists and farmers with 40 + years of experience in Sandalwood cell biology. We intend to do collective farming of Indian Sandalwood (Santalum album)in huge volumes. Agriculture is our teams passion and Sandalwood is our area of expertise. When farming is done in an collective manner and in huge volumes the cost incurred to involve latest technology, equipments and expertise comes down.This is what Australia has been doing and is now supplying Indian Sandalwood to India. Australia is doing farming of Indian Sandalwood involving Indian Scientists ( Dr.H S Anantha Padmanabha & Team) and selling it back to India which is a very alarming scenario. India has the best suitable environment to grow Indian Sandalwood. Until now we were hand-bound as Indian law did not allow individuals to grow Sandalwood however with the amendment of this law we as a company intend to do Sandalwood farming. Dr.H S Anantha Padmanabha the same scientist who has successfully done this plantation in many countries including Australia and in over 35,000 acres of land is now the Chief Executive Scientist (CES) ofVillage Organics.As a company Village Organics can independently do Sandalwood farming however only upto an limited extent. As mentioned earlier, to bring down the cost and to do an optimum utilization of this rich resource found within India we as a company have to do it in large volumes and the best way to do this is by involving individuals as a team and increasing the area of cultivation. It takes time, money and expertise to do Sandalwood farming. We intend to contribute time & expertise and invite individuals who have the passion for farming to invest as per their financial capacity. The rich yield from Sandalwood to be shared on 50:50 ratio thus justifying both the investors & the experts.

What are the risks involved in Sandalwood plantation and how does Village Organics take care of these risks? This is a very important Question we request investors to read it thoroughly

Climate:

K Muralidhar Reddy (Acharya) Designation with Village Organics: Executive Environmental Scientist who is a Master of Science (environmental science & engineering) from University of Maryland College Park, MD,USA handles the needs of environmental changes and its effects in our projects. a) Andhara Pradesh, specially Hyderabad and surroundings are known to experience moderate climate. Sandalwood Farming survival need of climate varies between 5 degree Celsius to 50 degree Celsius. b) The current project involves plantation of 1,12,500 trees which naturally decreases the environmental temperature upto 9 degree Celsius compared to the natural temperature thus ensuring that even in peak summer the temperature in the farms never exceed 40 degree Celsius. c) The selected project area and its surroundings has never experienced extreme wind or cyclones however as a contingency planning the initial saplings are planted with the support of 6 ft rods/bamboo sticks to avoid getting uprooted.

Diseases:

Village Organics stands incomparable from the other on this very important risk factor. There are about 150 diseases/insects effecting Sandalwood saplings (If you want a complete description of the diseases and their cure click here ) however 99% of them are eradicated in the one years duration in the nursery specially maintained for our group. Post one year of nursery maintenance saplings are handpicked for farm cultivation. During the growth tenure one has to take special care of insects like defoliators, sapsuckers, stem borers and termites. The role of sap sucking pests belonging to the family Coccidae is very deleterious to the normal health, growth and reproduction of sandalwood plants specially as this are invisible to human naked eye and cannot be identified easily. Our expertise team is specially trained to handle this occurrence by regular monitoring of the crop and its health.

Water availability/ drought :

Mr S V L Prasad who is currently working as Manager Horticulture of the Taj West End (Taj Group Hotels) Bangalore handles the horticulture department ofVillage Organics. a) Sandalwood trees consume minimal water for its growth when compared to its counterparts. The trees need watering only 5 months in a year and at the intervals of 14 days each. b) The current project has water availability from 9 ft onwards. Bore-wells dug in the farm are done after a firm geological survey and are dug almost 10 times more than the current water availability. c) As a contingency planning ground water recharging module is implemented wherein water beds are prepared within the entire farm by digging wells upto 30 feet and filling them with layers of rocks and sand beds. d) As the last resort, in case of failure of all the above planning, water can be availed on subsidy from the Government canal which runs within our project.

Soil fertility :

a) The land selected for plantation go through proper soil test for their PH value. The current project at Aleru has been selected post these tests. Even in scenarios where the ph value reduces interim , our scientists have identified artificial means of substituting it. b) The initial test have proved Aleru and surroundings to be very fertile for Sandalwood cultivation specially (santalum album) c) The surrounding have living sandalwood trees aged 4-6 years in the surroundings proving its capability to cultivate Sandalwood.

Mortality/Failure % :

Village Organics considers this factor as the most important factor in which the company expertises. Mortality/Failure % is very common in an unorganized farming done by freelancers, individual farmers, non agro based farmers like commercial real-estate ventures etc who fall prey to this loss. This is a long

term project and people try to cut the cost at the initial levels. I.E purchasing sapling at the least cost possible without knowing the crop genetics , not concentrating on soil fertility or pre-planning for soil erosion, not spending on water harvesting or contingency planning, compromising on security parameters, compromising on the cost to take expert assistance etc Let us give you an example of what we are trying to say : let's say you have been assigned a project in hand and as per your analysis your target profit from that project is Rs 1000 and the cost to do the project is Rs 100. When you know the outcome ratio is huge when compared to the cost then it doesnt make sense to compromise on the quality or cost which the project needs to complete successfully and risk/reduce the output. At Village Organics we handle this factor professionally without compromising as we are 50% share holders of the profit. The common mortality rate in our project is upto 18% which we try to further bring down by following the below mentioned parameters : a) Village Organics has a independent seed orchard designed to improve the genetics of the seed stock to produce trees of the highest quality. Superior trees are selected based on growth characteristics and oil content. These are then control pollinated to produce seed for use in the project. b) The saplings from this seeds are then grown in nursery for a period of 12 months before planting it into the cultivation area to further reduce the count of dead, week, infertile and impotent trees. c) Further, the hand pick saplings are planted in the cultivation area and back-up saplings are still maintained on a 100 : 3 ratio to further replace dead trees by replanting until the fourth year. Mr S V L Prasad who is a member of Village Organics specializes in re-plantation of trees. d) Trees planted in the cultivation area are supported with rod/bamboo sticks till the 4 year to help its roots gain ground support.

Labour :

With the growing economy the labour availability is shrinking day by day. With easier means to earn more even farm labourers in villages are fast moving towards metros causing huge shortage of availability in farming sector. Village Organics handles this sensitive issue with adopting an combination of technology & ethical traditional means. Our projects adopts latest Hi-Tech equipments which reduces the manual labour by 68%. All major farm activities starting from digging holes for plantation, regular weeding of dry grass, watering the plants etc are managed by machinery reducing labour dependency. Even the drip irrigation adopted by our company can self detect and pin point any faults within it thus reducing supervision.. The rest of the requirement of human labour needed to do the farming is select from villages following a stern recruitment process and the selected candidates are taken on permanent payrolls of Village Organics with all facilities like, PF, pension, bonus and a small share in the profits.

Fire:

Fire normally happens in an unattended surroundings such as in wild forests. However, Village Organics has understood the damage capacity of such untoward incidents and has planned well in advance. a) The first contingency planning is done by constructing an boundary thus reducing the risk of intentional planned fire outages done on purpose. b) The entire farms are sealed with single point entry system into the cultivation area wherein the staff/guest are frisked for security check. c) The farms undergo regular process of weeding wild grass thus reducing the fast growth of fire in case of one. d) The drip system adopted by Village Organics are equipped with heat sensors which automatically start sprinkling at their top capacity when there is a sudden change in the temperature. This acts like a fire extinguisher. e) The entire farm is well planned with approach roads for a fire- brigade vehicle to reach any point without hindrance. f) The permanent staff stationed at the project are trained/equipped to handle minor fire hazards.

Theft:

Sandalwood theft starts from the 6th year as the tree starts showing traces of oil content and therefore we have made adequate precautions for the same. Village Organics spends upto 36 % of the entire project budget on security. a) A very important point to be noted is the GO passed by Govt of India. As per the GO, the individual/company possessing/farming Sandalwood trees is/are the absolute owners of the same and can enjoy the outcome of Sandalwood without restrictions. Earlier smuggling/theft prevailed as Sandalwood was considered as govt property and individuals possessing it were under illegal possession. b) 7ft walls for the entire farm with 2ft of Solar fencing form the 1st level of security making it a single point entry and a secured gated farming module. c) The entire inner layer within the boundary walls are once again sealed with a security software which has been specially designed for Village Organics ( Security software companies name and details will not be disclosed for security reasons.) (i) This software security walls are designed to alert any changes in the continuity of the security chain I.E in case of any breakage at any point of the wall the security software senses the breakage and alerts. (ii) Sensing of human penetration by sensing heat.

d) 24x7 security personnel staff which would be increased as per requirement and the growing age of the plant. e) The security staff stationed at the project is shuffled every 11 months as to avoid any local contact. f) Full time dog squad management from the 7th year as a contingency planning. i) Installation of vigilance cameras at key points with 24x7 recording facility. j) All above mentioned security activities to be outsourced to different vendors for a maximum period of 24 months without any scope of agreement renewals. k) Inserting of RF Ids (Radio Frequency Ids ) in the stem of all Sandalwood trees at the age of four which is invisible to naked eyes however can trace the transportation of logs in worst to worst scenarios.

Loss of key role personnel:

Village Organics's management team realizes that a long term project needs proper planning this includes back-up planning for the key role personnel. Our projects are carefully planned reducing the dependency on single individual/s by transferring knowledge to the next generation. We have a team of 12 interns from various agricultural universities who are full time employees of Village Organics and have undergone complete training in handling the crop module designed in case of any unforeseen events.

Competitor Risk:

a) Indian govt passing the GO for Indian citizens to cultivate/hold and enjoy Sandalwood has already made experts in Australia to draw back from re-cultivation of Indian Sandalwood as they realize the risk and competition with Indian counterparts growing Indian Sandalwood within India. b) Competition within India is very minimal due to various reasons like . i) The average per capita operational size of land holding in India is 1.33 ha, which is far below the world average of 3.7 ha per person. Further, land holdings have shown a marginal decrease from the holding size of that of a decade ago (1.41 ha) ii) Financial capabilities of Indian Farmers which is no hidden secret. iii) Even if our real-estate giants realize the potential of Sandalwood and start selling their plots with Sandalwood trees, their quality would be beyond the market acceptability and the outcome can only be used for the carving industry which pays the least compared to the oil content bearing trees. iv) Small players and individual trying their hands would/might also face the same consequences of ending up their yields for the carving industry due to poor crop management , Security management, skills & expertise managements. (v) Even if we get proper & healthy competitors Sandalwood Industry's current demand needs about 80,000 hectares of cultivation each year to meet their current demands.

Demand and Supply :

With the GO being realized its very obvious for individuals to take up Sandalwood farming and we at Village Organics invite healthy competitors as we are strongly working towards the restoration of Indian Sandalwood within India. Demand would never be effected as right on date Sandalwood needs 80,000 hectares of cultivation to effect its current demand and this demand is increasing at 18% per annum.

Village Organics abandoning the project in midterm :

This is highly impossible as we do not get profits at the beginning by selling land/s however get continuous and adequate profit right from the 3rd month of stating the project till the project ends. As a company Village Organics would continue doing Sandalwood Farming year after year thus capturing the Sandalwood market from the fifteenth year and thereafter. As income is shared on 50:50 ratio the company will continue to retain interest and monitor the farming process in the best possible manner. The profit volume increases as the years pass and therefore reduces the risk of abandoning the project in midterm.

Insolvency of Village Organics:

a) Village Organics is a well planned establishment with strong financial background. As a company we have the financial capabilities of doing Independent farming without external funding. b) The project is planned to be self funded for all its maintenance costs as Sandalwood farming needs host plants at various levels which manage continuous funding for management. c) The project design is so made that the funding for END to END farming is collected from the investors right in the beginning to overcome any cash delinquencies from the investors. d) Experts involvement and their compensation has been well planned so as to sustain their continued interest in the project. How do you claim to provide maximum Security & Returns for my investments? To confirm that we provide maximum security & returns for your investment we need to first understand what is the real meaning of risk. Risk is the potential that a chosen action or activity will/might lead to a loss and in our case the risk in discussion is your initial investment. Risk in our case can happen if the initial purchase price is not justifiable. If Sandalwood cannot fetch in crores . If our team does not expertise in cultivating Sandalwood and If Village Organics abandons the project in between. The above factors have been carefully taken care of and a detailed explanation has been answered above under Q.no : 2 Risk of Initial Investment : This risk prevails till the investment amount is not secured I.E if you are investing @ Rs 250 per SqYd can liquidation value (that is if this property is disposed) get you Rs 250 atleast. Village Organics guaranties this factor by selling the project at the base price and adopting the STEP-UP pricing module. Risk when compared : Once you are confirmed that your property can fetch the invested amount + atleast Rs 1 added ( I.e if you purchase it at Rs 250 per SqYd and it can fetch atleast Rs 251 per SqYd) the risk with comparison starts. Like, what would it fetch if you had invested it elsewhere. Sandalwood Farming returns ratio is 1:50. means, it has the capacity of fetching Rs 50 for evey rupee invested and is way above any available market option. Is this the first Sandalwood project for Village Organics? How do we trust your expertise? This is not the first Sandalwood cultivation for Village Organics. We have a great Team of Scientists and Biologists with 40 plus years of experience in sandalwood cell biology who have mastered the technology of artificial raising of sandalwood. We have successfully grown Sandalwood in our own farms of 30 acres since 2004 and the crop has given excellent results so far We have successfully started and sold our first commercial project at Aleru ( Warangal highway ). For details click here

This is our third project and we have many more in line What is STEP-UP pricing module and how does it helps customers? A project needs investors funding right from the initial stage however different investors need different security levels to help them understand and feel secured to invest in any project. (a) Few want to know as to how many people have invested and are ready to invest only after many others invest. (b) Few want the plantation to be completed and only post which they feel comfortable to invest. We as a company understand and accept the insecurity nature of the customers and customers cannot be blamed as the past experiences have not been good in many cases. However, as a company we need the initial investors to invest in order to answer these questions and to reach the plantation stage. On the other hand we have investors who can analyse the capacity of the team and the project details at the initial stages and can start investing. STEP-UP pricing module helps an organization in such situations. The pricing in such modules purely depends on the development/s done in the project and the Risk vs Reward ratio. For example our pricing spreads between Rs 250, 285, 335 and finally to Rs 385 per SqYd. Anyone buying at any stage get the same final benefit of 4crs. The difference in the initial investment pricing helps the customer decide as to which stage they want to accept entering the project and properly compensates the initial risk takes as per the Risk vs Reward ratio. If the results are guaranteed, then why dont the farmers or the project owners do the farming themselves? As a company Village Organics has already identified the huge potential in Sandalwood cultivation and to make this even more successful and risk free we have pooled in the highest talent & expertise. We have adopted the latest techniques which comes from years of tailoring and is based on a tested and proven technology. The costs incurred in adopting this technology & expertise can be used upto any extent of farming area. As per our experts analysis the cost of farming per acre gets even lesser with the increase in volume of farming. As a company we can independently do its farming however only upto a limited extent. To do an optimum utilization of this rich resource, to bring down the costs incurred and to increase the volume of farming we involve individuals as a team and share the outcome. Many individuals, especially the working class employees wish to get into farming. However, lack of time and expertise keeps them away from doing so. Sensing this as a profitable opportunity many sharp brains lure employees in the name of Mango/fruit bearing plantation, green house planning, second home etc etc. Post involving in such unfruitful investment option the investors form a negative prospective towards farming and add to the already prevailing disaster to our agro industry. As a company Village Organics helps these individuals determine the actual costs incurred for doing an successful farming and offers them an opportunity to join the organization's growing potential of Sandalwood farming thus also helping this cash crop called "wooden gold" retain its reputation before it gets tagged as in the case of Teak-wood. This combination of individuals and the company results as a win-win situation for all, including the tree. How am I benefited, whats in it for me? You get the ownership of a decent property ( acre or multiples)at very nominal price. You get 50 % share in one of the worlds richest cultivations without personally involving yourself as everything is taken care by the project owners. You invest, sit back and share the yields. Mango plantation fetches upto 80 thousand PA per acre right from the 5th year up to 30 years. 10th year the teak wood fetches around 2.25 lakhs per acre. 15th year the sandalwood crop yields and fetches the expected fortune of about 4 crore. The company is in the process of getting approved for carbon credits" which is a program run by the UNFCCC which encourages individuals & groups who grow trees by awarding apprx $ 15 a year for each crop grown (Starting from the 8th year of the crop) Access to guest house with family and friends. Clearance from Govt of India has been availed thus no interpretation from the Government for sandalwood sale.

The best part I liked is that the income under this project is TAX FREE as it comes under Green Money. If we keep the commercialism aside, you would be a proud contributor of 450 trees (per acre) to the environment. Post 15 years this investment is seen as a good plan for a farm house as the project will end up with only mango groves (as teak and sandalwood will be sold ) leaving behind a lush green farm land big enough for construction, with gated community, common guest house, well laid roads connecting each acre of land giving independent access to the land owner/s and the most important the likeminded neighbors as all the owners would have minimum of acre of land, which means family privacy and would be an ideal plan to get away from the concrete jungle for a post retirement life. Can we buy a plot of land without Sandalwood plantation on it, for construction? No. The very purpose of we doing this project is to get the benefits from the final crop. We are not into real - estate and do not sell open plots . What is carbon credits and how do we customers financially benefit from it? As nations have progressed we have been emitting carbon, or gases which result in warming of the globe. Some decades ago a debate started on how to reduce the emission of harmful gases that contributes to the greenhouse effect that causes global warming. So, countries came together and signed an agreement named the Kyoto Protocol . This is the largest portfolio for any country signatory to the United Nations Framework of Climate Change Convention (UNFCCC). The UN body certifies countries and companies that can trade in carbon credits under the Kyoto Protocol. The Kyoto Protocol has created a mechanism under which countries that have been emitting more carbon and other gases (greenhouse gases include ozone, carbon dioxide, methane, nitrous oxide and even water vapour) have voluntarily decided that they will bring down the level of carbon they are emitting to the levels of early 1990s. Developed countries, mostly European, had said that they will bring down the level in the period from 2008 to 2012. In 2008, these developed countries have decided on different norms to bring down the level of emission fixed for their companies and factories. India, China and some other Asian countries have the advantage because they are developing countries. Any company, factories or farm owner in India can get linked to United Nations Framework Convention on Climate Change and know the 'standard' level of carbon emission allowed for its outfit or activity. The extent to which I am emitting less carbon (as per standard fixed by UNFCCC) I get credited in a developing country. This is called carbon credit. These credits are bought over by the companies of developed countries -- mostly Europeans. Village Organics has outsourced this opportunity acquisition to various brokerage companies and the final benefit negotiations is ongoing. What is the cost and term of payments? Area in Acers 1 acre acre acre Area in Sq Yds 4800 2400 1200 Cost in Single payment 12,00,000 6,00,000 3,00,000 Cost in Installments 14,00,000 7,00,000 3,50,000 INSTALMENT DETAILS Down Payment 2,00,000 1,00,000 50,000 Balance EMIs 60 60 60

EM

# Above price inclusive of all amenities like agricultural land along with farming equipments, labour wages, saplings, planti expenses, bore wells, overhead tanks, sprinklers, geo coding technology, staff quarters, solar fencing, security, non tar roa connecting every plot for every acre of land, common bamboo cottages &swimming pool and the maintenance cost for th 4 years. ** Land registration cost extra to be borne by the customer during registration depending on Govt evaluations. What is the progress stage of the project?

This is a agricultural project and its progress depends mostly on Nature. Kindly find brief description of the progress: Description Nursery plantation Land availability identification Soil/Water tests Land Acquisition & layout Field clearance & pit filling Road clearance Soil erosion planning Water harvesting planning Individual property identification Electricity Bore wells Drip irrigation and sprinklers Transportation of Plantation from Nursery Plantation in cultivation area Guest House 7 Ft Fencing Status Completed Completed Completed Completed Completed Completed In progress In progress In progress completed In progress Future Dated Future Dated Future Dated Future Dated Future Dated Remarks Sandal and Mango saplings in Nursery since July 2011 360 acres identified near Vikarabad Completed Completed Completed Completed To be completed by 30/09/2012 To be completed by 30/09/2012 To be completed by 30/10/2012 completed To be completed by 30/06/2012 To be done after competition of Bore well works Scheduled for the last week of July 2013

Scheduled for the first week of August 2013 or later depending on arraival

Three cottages to be completed by 30/09/2012. Seven more to be in March 2013. To be completed by 31/10/2012

I would like to, but I am worried about the Telangana issue? We are not sure what it actually means by Telangana issue in fact we would like to know how it affects agriculture or the land value. Would a customer/owner sell his land for a lesser price then what he purchased for? Even if the partition happens, its not going to be like Pakistan and Indias separation. We would still be Indian citizens having completes rights. This might partially affect the commercial sites, super malls, i-plexes, or other business establishments which depends on daily customers and are located within the city limits. This might affect the real estate or the construction industry which took the prices sky high accounting to the IT boom and now want a reason to pull back the prices due to poor sales.. This project is entirely different and does not really depend on land value. The agricultural yield is the most important factor here. In fact, this has come as a blessing in disguise to us. When we started the project somewhere 3 years back the same land was priced at around 2.3 to 2.5 lakhs (Without including clearance/leveling/pit filling etc) however we have managed to acquire it at a much lesser price now as we acquired around 200 acres and this leads to a benefit for the end user. Anyways, this is a long term investment and is in agriculture. Mother Nature would bless exactly the same yield irrespective of it being in Telangana or Andhra (no offence please) and the land appreciation will also not get affected as it is already bought at the least price possible. Everything has its own good and bad effects its just the way you look at it. What is the cost of dry land in the same locality? The dry land costs approximately 4 to 4.5 lakhs per Acre (including clearance/leveling/pit filling etc) Then, why are we being charged 12 lakhs for an acre?

The project owners have taken the compete responsibility of the crop till the fourth year. The initial stages of sandalwood cultivation is the most costly affair. Things like , farming equipments , saplings, planting expenses, bore wells, overhead tanks, sprinklers, geo coding technology, staff quarters, guest house, solar fencing, Roads for every acre of land, maintenance cost for 4 years etc take away almost all of the initial investment. This, when calculated, for the entire project, comes to the asking amount by the project owners. Few of the major cost contributors for every acre are: Land with clearance, pit filling, leveling, infertile land, wastage, roads, amenities etc 400 trees including transportation ( 265 each ) Drip irrigation (John Deere) /sprinklers (Wt 15 Yrs maintenance) Fencing 7 Ft (Cumulative for every acre) TOTAL 6,50,000 1,06,000 165,000 80,000 10,01,000

Other expenditures add and total up to the asking price. The farmers grow minute crops (like watermelon, jawar, ragi etc ) till the 4th year for their survival as the main trees do not shade the land. This income is not shared with the land owners however helps them lower the cost prize as maintenance cost is managed out of this. Do we (customers) have to pay anything for the maintenance cost after the fourth year ? No, the initial stages of sandalwood cultivation is the most costly affair however after the fourth year the trees grow big and needs less maintenance. Added, the mango trees start yielding small incomes which takes care of the maintenance. Post maintenance expenses the land owners can expect small profits "approximately " 20-30 thousand PA (per Acre). We have classified the expenses to maintain clarity as the initial investment can only take care up to the 4th year. Why do we (customers) have to bear the entire initial cost when the profit sharing is on 50/50 basis? The very intention of involving customers is for their money investment. The project owners contribute their part of investment with their expertise in sandalwood farming. However, the customers are not being left out as the land is being solely registered in their names with appreciating value. Who is Dr. H S Anantha Padmanabha ? and how is he associated with this project? Dr.H S Anantha Padmanabha, the forestry consultant, is an expert on sandalwood cell biology, who mastered the technology of artificial raising of sandalwood. A scientist of 40 years experience in forestry in India, he had worked as a senior scientist at the Institute of Wood Science and Technology in Bangalore (India) from 1964 to 1998 and was responsible for guiding research projects on sandalwood and other forestry species including but not limited to techniques of growing sandalwood and decease and pests affecting forestry tree species. Currently he is a Director of Karnataka Research Foundation and Advance Technology Transfer, Bangalore, Consultant to Tropical Forestry Services Western Australia, consultant to Forest Rewards, Western Australia, and had served as consultant to Department of Conservation and Land Development (CALM) and Forest Product Commission (FPC) Government of Western Australia from 1998 to 2002. He is honorary consultant to Karnataka Soaps and Detergents Ltd, Bangalore, assisting and providing guidance to farmers, corporate bodies and NGOs in growing sandalwood in India. He has co-authored books on sandalwood and have published over 150 publications in both Indian and International journals. He was designated as chief Technical Advisor for sandalwood projects with the World Bank FREE project (ICFRE) Government of India. He is currently appointed as the chief technical scientist for this project . Many articles have been written about him. Do you have any Insurance for this crop as it is a long term crop?

Yes. Our farms are insured upto 3 Crores per acre. This is currently provided on optional basis to our customers. I would like to see the site. Do you provide the transport facility to visit the site? You are welcome to visit the site on any Saturday or Sunday. We do not provide transportation facility on companies cost. You would have to travel on your own convenience, or companies cab can be availed at a cost of Rs 400 per head. Are there any discounts or price negotiations ? The offer price is fixed and we do not have any scope for negotiations. When is the land registered in my name? The registration/transfer is done on receipt of full payment or on the completion of all installments. Can we have choice in selecting the land allocated to us? An up to date copy of the layout and allocation would be available at the time of registration and allocations are done on first come first serve basis (without any prior reservations) to maintain a fair and transparent ownership. As owners, can we construct a farm house, on our own expense, in our allotted piece of land? No, though customers being the owners it cannot be allowed for any construction in the cultivation area. However, if interested, separate area has been arranged at nominal cost. I come from farming background, can I implement/handle/add/modify any changes to my piece of land or the crop? Ideas/suggestions are welcome. However, theres a lot of investment involved in availing proven technology by reputed scientists/biologists for the project and hence any changes/modifications is strictly not permitted without prior and written concern of the project owners. What happens if my piece of land yields lesser than the others. Will I get lesser returns? As in cultivation, the yields might/would differ depending on lots of reason/s therefore the collective yield is divided cumulatively among all the members, irrespective of individual contribution. What if I wish to sell the property in the mid of the term? As the owner you are free to transfer/change the ownership however the new owner has to agree/follow the same agreement of cultivation as done originally. Any/all cost/s immerging out of the transfer has to be borne by the customer or the new party. As a member, is everything free of cost in the project guest house? The project guest house has been planned to provide basic facilities for members, planning for a short visit (with prior intimations). The stay would be charged at very nominal expenses so as to have a fair and equal usage among all the members. However ,the members are requested to use the facility only if needed and only for a short time as this would not be a full time accommodation. What is the project exit plan? The sandalwood harvest will bring the project to an end. Thereafter, the entire project would be handed over to the customers after forming a general body and electing community leaders. However customers who are interested can approach the project owners for another term of harvesting with terms and conditions decided at that point (depending on prevailing conditions). Whom do I consult/approach in case of legal conflicts? Optimum care has been taken to avoid conflicts and the customers are welcome for verbal discussions with project owners and other members collectively. However, in case of no solution, any legal conflicts are limited to Hyderabad jurisdiction.