Cinnamon Farming: Complete Business Guide in India (2025)

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Learn how to start profitable cinnamon (Dalchini) farming in India. Detailed info on soil, climate, yield, processing, investment, and export opportunities.

Cinnamon, also called Dalchini in India, is a world-famous spice derived from the inner bark of the Cinnamomum verum tree. It’s valued for its distinctive aroma, taste, and medicinal properties.
Once considered a luxury spice in ancient times, cinnamon is now a profitable crop for modern Indian farmers, especially those targeting the export and organic markets.

With global demand growing annually at 8–10%, cinnamon farming offers long-term income and sustainability. Let’s break down everything — from soil selection to export strategy — for anyone serious about building a cinnamon farming business in 2025.

                                                 
Farmer harvesting cinnamon bark on plantation in India for profitable spice farming business

1. Understanding Cinnamon: Origin and Importance

Cinnamon originated in Sri Lanka and southern India and later spread across Southeast Asia.
The spice is made by peeling and drying the inner bark of mature shoots.

There are two major commercial varieties:

  • Ceylon Cinnamon (True Cinnamon): Fine texture, light color, delicate aroma. Used in high-end markets (Europe, USA, Japan).

  • Cassia Cinnamon: Thicker bark, stronger flavor, lower cost, and widely used in India and China.

India mainly cultivates Ceylon cinnamon in Kerala, Tamil Nadu, and the Andaman & Nicobar Islands.


2. Climate and Soil Requirements

Cinnamon prefers hot, humid, tropical climates with abundant rainfall.

ParameterIdeal RangeNotes
Temperature20°C – 30°CGrowth slows below 15°C
Rainfall1250 – 2500 mm/yearEvenly distributed
Humidity60–70%Promotes bark thickness
AltitudeUp to 1000 mHigh-altitude cinnamon is thinner and aromatic
SoilWell-drained sandy loam or lateritic soilAdd organic matter for best results
pH Level4.5 – 6.0Slightly acidic conditions favor bark growth

Pro Tip: Never plant cinnamon where water stagnates. Proper drainage channels around the field prevent root rot.


3. Varieties and Planting Material

The main Indian varieties are:

  • Cinnamomum verum (Sri Lankan type): Best quality.

  • Cinnamomum cassia (Chinese type): High yield, strong flavor.

  • Cinnamomum zeylanicum: Commonly grown in Kerala.

Select certified disease-free seedlings from government nurseries or the Spices Board of India.


4. Propagation Techniques

Seed Propagation

  • Collect seeds from high-yielding mother trees.

  • Wash off pulp and sow immediately — seeds lose viability after 7 days.

  • Sow in nursery beds (shade-net recommended).

  • Germination takes 15–20 days.

  • Transplant after 6–9 months.

Vegetative Propagation

  • Use semi-hardwood cuttings of 10–15 cm with 2–3 leaves.

  • Dip cuttings in rooting hormone (IBA 2000 ppm).

  • Plant in polythene bags filled with sand, soil, and compost (1:1:1).

  • Water regularly and transplant after root development.

Air Layering

Best for uniform commercial plantations. Shoots are girdled, treated with rooting hormone, and wrapped with moist moss. Roots form in 45–60 days.


5. Land Preparation and Planting Method

  1. Clear weeds and level the field.

  2. Dig pits of 45×45×45 cm at 3 m × 3 m spacing.

  3. Mix topsoil with 10–15 kg compost or FYM per pit.

  4. Plant seedlings at the onset of monsoon (June–July).

  5. Mulch base with dry leaves or coconut husk to retain moisture.

You can plant about 1100 trees per hectare.


6. Intercropping and Companion Crops

Cinnamon is a long-term crop (harvest starts in 3–4 years). So, intercropping helps generate short-term income.

Recommended intercrops:

  • Ginger and turmeric: Utilize shade well.

  • Black pepper: Climbs on cinnamon stems.

  • Banana: Acts as a temporary shade crop.

  • Clove or cardamom: For spice diversity and soil enrichment.

This spice polyculture model ensures income stability and better biodiversity.


7. Fertilizer and Nutrient Management

Cinnamon plants need balanced nutrition for bark thickness and oil quality.

NutrientDose/Plant/YearTime of Application
FYM/Compost10–15 kgBefore monsoon
Nitrogen (N)40 gSplit twice yearly
Phosphorus (P)20 gSplit twice yearly
Potassium (K)40 gSplit twice yearly

Use organic manures and vermicompost to improve aroma and reduce chemical residues — especially for export-grade produce.


8. Irrigation and Mulching

  • Young plants: Irrigate once every 5–7 days.

  • Mature trees: Irrigate during dry months (Feb–May).

  • Mulch the base with dry leaves or straw to conserve moisture and suppress weeds.

  • Use drip irrigation for efficient water use.


9. Pruning and Coppicing

After 2–3 years, cinnamon trees are cut near ground level (15–30 cm) to stimulate new shoots — a process called coppicing.
Each stump gives 8–10 new shoots annually.
Select the best 4–5 shoots and remove the rest for uniform growth.


10. Pest and Disease Management

Common issues and their control measures:

ProblemSymptomsManagement
Leaf SpotBrown circular spots on leavesSpray 1% Bordeaux mixture
Root RotSudden wilting, yellowingEnsure drainage, apply Trichoderma
Shoot BorerHoles in young shootsUse neem oil or light traps
Scale InsectsSticky leaves, black sooty moldSpray 1% soap solution or neem extract

Follow integrated pest management (IPM) with organic sprays for sustainability.


11. Harvesting and Processing

Cinnamon harvesting requires skill and timing.

When to Harvest

  • First harvest: 3–4 years after planting.

  • Subsequent harvests: Every 2 years from coppiced shoots.

How to Harvest

  1. Cut mature shoots (2–3 years old).

  2. Remove outer bark and peel inner bark carefully.

  3. Dry under shade for 4–5 days.

  4. Bark curls naturally into “quills.”

Processing

  • Grade barks by color, thickness, and aroma.

  • Store in airtight containers.

  • For oil extraction, use steam distillation of leaves and bark chips.


12. Yield and Economics

ParticularEstimate (per hectare)
Mature trees~1000
Dry bark yield50–70 kg/year
Leaf oil yield20–25 kg/year
Market price (bark)₹600–₹900/kg
Oil price₹2,000–₹3,000/litre
Gross annual income (after 5 years)₹3.5–₹4 lakh
Net profit₹2.5–₹3 lakh
ROI (5-year)150–200%

 The profitability improves further when value-added products (powder, oil, or blends) are sold directly to consumers or online.


13. Value Addition Opportunities

Cinnamon offers multiple income streams beyond raw bark:

  1. Cinnamon Powder: High demand in bakeries and health markets.

  2. Cinnamon Oil: Used in perfumes, cosmetics, soaps, and aromatherapy.

  3. Cinnamon Tea Blends: Organic, premium product line.

  4. Cinnamon Extract Capsules: Herbal supplement market.

Setting up a mini spice processing unit can increase profit margins by 30–40%.


14. Marketing Strategy and Export Potential

India’s spice export industry is booming — worth over ₹30,000 crore annually.
Cinnamon is among the top value spices due to its steady demand worldwide.

Target Export Markets

  • USA

  • UK

  • Germany

  • UAE

  • Japan

Domestic Market Channels

  • Organic and gourmet food stores

  • Ayurvedic companies

  • Spice wholesalers and online platforms

Branding Tip:

Use organic certification, GI tags, and social media storytelling (Instagram reels, YouTube shorts) to build authority as a “spicepreneur.”


15. Government Schemes and Financial Support

Farmers can leverage several government initiatives:

  • Spices Board of India: Provides training, planting material, and export guidance.

  • NHB (National Horticulture Board): Subsidy for plantation and processing units.

  • NABARD: Loans under Agri-Enterprise scheme.

  • Paramparagat Krishi Vikas Yojana (PKVY): Support for organic spice cultivation.


16. Cinnamon Farming Business Plan Summary

ComponentCost Estimate (per hectare)
Land preparation & planting₹40,000
Seedlings (1100 plants)₹30,000
Manure & fertilizers₹15,000
Irrigation setup₹25,000
Maintenance (2 years)₹60,000
Total Investment₹1.5–₹1.7 lakh
Expected Revenue (after 5 years)₹3.5–₹4 lakh/year
Net Profit₹2.5–₹3 lakh/year


17. Challenges in Cinnamon Farming

  • Long gestation period before profit (3–4 years).

  • High humidity may cause fungal diseases.

  • Skilled labor needed for bark peeling.

  • Export quality standards must be strictly followed.

Solution: Start with 1 acre as a pilot project, integrate organic practices, and scale up gradually.


18. Future Scope of Cinnamon Farming in India

The future looks bright:

  • Global shift toward natural flavoring agents.

  • Demand from wellness and cosmetic industries.

  • Government incentives for export-oriented spice crops.

With proper marketing and processing, India can rival Sri Lanka in the premium cinnamon segment.


19. Quick FAQs

Q1: How many years does cinnamon take to yield profit?
→ Around 4 years after planting, with steady income thereafter.

Q2: Can cinnamon be grown organically?
→ Yes, easily. Use neem cake, vermicompost, and biological pest control.

Q3: Is cinnamon farming suitable for small farmers?
→ Absolutely. It’s a long-term, low-maintenance crop with high returns.

Q4: Can I grow cinnamon in pots?
→ Yes, for hobby farming or as ornamental plants. Use large containers with drainage.


Cinnamon farming represents a perfect blend of traditional wisdom and modern agribusiness.With rising global demand, strong market prices, and government support, it’s one of the most promising spice crops for 2025 and beyond.By combining organic methods, scientific techniques, and smart branding, you can turn this aromatic tree into a long-term, export-ready business. 


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