FAQ

Is it legal to grow and sell Sandalwood?

Indian government law does not specifically prevent growing sandalwood trees in one’s own property. Only Karnataka State, there is ambiguity, however, it has been clarified, 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. The government is also providing a subsidy to grow sandalwood through State & Central Medicinal Plants Authority and Horticulture Department.

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
Indian Sandalwood has huge demand worldwide and the supply is currently way under the demand.
100 gms of branch wood (sandalwood) costs Rs 900 (source : Mysore sandal soap, Karnataka)
5 ml of sandalwood oil costs Rs 1350 (source : Mysore sandal soap, Karnataka)
Per Kg of Sandalwood (heart wood ) is around 5000 rupees as on 2012. (Source- MSIL).
Is it possible to harvest Sandalwood in 15 years as we heard it takes around 35 - 40 years?
Sandalwood trees 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. Through Stress development technique, providing Host plants, good water and fertilizer management are followed to ease Sandalwood’s growth with in 12-15 years.
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. On the behalf of the investors we can develop sandalwood plots on consultation basis.
What is the difference between Indian and Australian Sandalwood?
Of the 15 different species of sandalwood that grow throughout the world, there are 2 main varieties that are traded internationally. These are santalum spicatum (Australian sandalwood) and santalum album (Indian sandalwood). Australian sandalwood currently supplies well over half of all sandalwood traded around the globe annually. Australian sandalwood has historically been used in the agabati and incense markets in China, Taiwan and Hong Kong and most other Asian countries. It has been widely accepted in these areas for over 150 years. In recent years Australian sandalwood oil has been incorporated into many high end perfumes and other cosmetic products. Australian sandalwood does produce a lower oil content than Indian sandalwood although it consistently produces the oil forming heartwood from a very young age. Australian plantation sandalwood has been tried and tested in small plantations throughout WA for over 25 years by both private and Government organizations.
How much oil does one tree produce?
Oil yield in sandalwood trees varies between species. The oil is present only within the heartwood of the tree. The older the tree, the larger percentage of heartwood exists within the tree therefore the more oil is present within a given tree. On average, Australian sandalwood produces between 3 to 3.5% oil within the heartwood and Indian sandalwood betwen 3.5 and 5%, in its lifetime.
When is the Sandalwood seed produced and what is it used for?
Sandalwood trees start producing seed from around 4 years of age. Currently, the main market is to supply the sandalwood plantation industry. The seed also has great potential within the pharmaceutical and cosmetic industries as it has many unique properties within the kernel itself. It has very high levels of protein and may also be used as a food product.
Does the growing of Sandalwood help to combat climate change?
Yes, any tree crop contributes to combat climate change through the absorption of greenhouse gases.

SRI GANDHAM HEARTHWOOD
Average yielding per Tree		Rate Trends
Tree Age	Tree in Kgs.	Year	Rate per Kg
12	30-40	1995	775
13	40-50	2000	2900
14	50-60	2010	5500
15	60-70	2012	6000
		2013	7000
		2014	8500
RED SANDAL HEARTWOOD
Average yielding per Tree		Rate Trends
Tree Age	Tree in Kgs.	Year 2013-14	Rate per Kg
12	40-60	A-Grade	10000
13	60-80	B-Grade	8000
14	80-100	C-Grade	3000
15	100-120	Year 2014-15	Rate per Kg
		A-Grade	19500
		B-Grade	15500
		C-Grade	3500

Till recently, there were severe restrictions on cultivation of sandalwood. If it happened to come up, the plant became the property of the state. The restrictions have been relaxed; cultivation is now allowed and one may apply for a government subsidy for doing so.

The changes followed an alarming decline in natural plantations across southern states in the last decade, due to rampant smuggling and illegal trade. The auction of sandalwood by different state governments dropped from a high of 2,500 tonnes in 1993-94 to just 300 tonnes in 2008-09. The governments of Tamil Nadu and Kerala collectively auctioned less than 300 tonnes during 2010-11. Tamil Nadu conducts auctions thrice a year, while Kerala holds it once a year. Karnataka, a leading producer, has not held any auction for the past three years.

The price of sandalwood has, correspondingly, seen a sharp rise, from Rs 1 lakh per tonne in 1990 to Rs 50 lakh per tonne last year. The sale of wood attracts 12 per cent value added tax and 14 per cent excise duty when used as an ingredient in soaps by companies like KS&DL. Sandalwood oil has surged from Rs 20,000 per kg in 2001-02 to Rs 140,000 per kg in 2010-11.

Sandalwood grows prominently in arid, parched land. It is the key ingredient in the manufacture of attar, perfume, soaps and toiletries, chewing scented tobacco, pan masala and medicines. The oil is used to treat a variety of medical ailments. It is also supposed to be a mood enhancer.

In natural conditions, the sandalwood tree takes at least seven years to produce scented heartwood and its growth is restricted due to climatic factors, soil, vegetation, fire, grazing and human interventions. Under these conditions, a fully developed tree requires about 30-35 years for harvesting.

Plantation-grown trees show heartwood formation in about three to four years and develop good heartwood, ranging in diameter from 15 cm to 25 cm, in about 12-15 years. Harvesting at this age is much more economical and commercially viable. The tree is a partial root parasite, requiring another host tree by its side, through which it draws nutrient for good growth. 

Room for growth

At present, the Tamil Nadu forest department holds about 650 tonnes of sandalwood and releases 150-200 tonnes every three months. The forest department of Kerala holds less.

A large number of farmers and individuals with large land holdings have taken up commercial plantations in Karnataka, Maharashtra, Andhra Pradesh and Rajasthan. Presently, there is no natural regeneration of sandalwood trees in the southern states, except Kerala, where close to 3,000 acres is under natural cultivation.

How much a Seedling Cost?

Economic significance 

Economics of raising QPM stock of sandal seedlings Sandal should ideally be raised in root trainers rather than polybags as the root system is far more established and better in root trainer raised seedlings as compared to polybagged raised ones and showed better results in growth and establishment in field. 

However an initial infrastructure investment by way of root trainers and stands have to be incurred. 

If recurring costs alone are considered then root trainer seedlings have a lower production cost of Rs 6.26 per seedling as compared to Rs 6.45 per 1500 cc polybag seedling which is mainly due to lesser quantity of consumables (sand, compost etc) used. 

Moreover the root system development and haustorial association with primary host redgram in the case of sandal seedlings raised in 270cc root trainers is far better than polybagged seedlings. 

These seedlings were also found to establish perform much better in field conditions. 

Planting poor inferior quality sandal seedlings from unknown seed origin and planting in nonscientific manner without proper host plants would jeopardize the end results expected and would cause great financial loss to farmer since quality of heartwood would be compromised.