FAQ about Sandal Wood Plantation

SANDALWOOD

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.

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)
4. 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.

Major Uses of Sandal Wood

Medicinal Uses:

The wood is bitter, dry, antipyretic, aphrodisiac useful in diseases of the heart, burning sensation, cold, bronchitis, vaginal discharges and small pox.

The wood is tonic to the heart and the brain. 

Paste is useful in inflammation and head ache. 

It has antiseptic properties and can be applied to skin. Local people commonly apply the wood ground up with water in to a paste to local inflammations to the temples in fevers and to skin diseases to allay heat. 

In Madagascar, the wood is mixed with salt and applied to wounds. The heart wood and root contains scented sandal wood oil, which are highly valued in medicine, cosmetics, perfumery and industries. 

Wood is used for fine carvings also.

Sandal finds many religious uses also.



Sandal wood oil is the base of high quality perfumes. 

In medicine it is used as antiseptic and antipyretic. 

The sandal wood is known as a remedy for fever, indigestion and palpitations. 

The paste of heartwood is applied on inflammations, skin diseases etc. 

It is considered sacred by Hindus. 

The heartwood is coolant, and is reported to be bitter, diuretic, disinfectant, anti septic cardiac, sedative and tonic. 

It is a curative medicine for bronchitis, biliousness, fever, thirst cystitis, dysentery, gonorrhea, ulcers and genitor-urinary tract problems. 

The paste of heartwood is a medicament for skin problems and in the preparation of Ashokaristam, Chandanadi choornam, Chandanasavam, Anutailam and Dhanvantaram kashayam etc. 

There are different types of chandana, referred to in Sanskrit literatures. Many adulterants and some synthetic products used in the market have cut down the quality of sandalwood products and medicines.

Other Uses:
The wood is largely used for making small domestic items; it retains its pleasant perfume for a long time. The wood powder is used for making Agarbathis and as incense powder. The oil is largely used as perfume in in toilet fresheners’ preparations and in insecticides also.

Incentives for Sandal Wood Plantation

Incentives for Sandal Wood Plantation

1. Govt. of India encouraging farmers and growers for cultivation.
2. Since the plant is highly endangered in Red listed plant species of India and world.
3. Govt. of India supporting with a subsidy on cultivation with 75% of total cost of cultivation through National Medicinal Plants Board (NMPB). APMPB in Andhra Pradesh.
4. Huge growing market demand.
5. Many buyers are eager to purchase the wood.
6. Easy to cultivate.
7. Forest department removed restrictions on cultivation.
8. Our Soils and Climate are suitable for cultivation.
9. Draught and shade resistant.

The major reasons and scope for cultivation:

The major reasons and scope for cultivation:

1. Exhausting population of sandal plant in our forests due to indiscriminate destruction of forests.
2. Depending completely on forests from ancient times.
3. Growing demand nationally and internationally.
4. There was no permission for growing this plant in fields and at home.
5. Sandal wood is now highly endangered species in India.
6. Sandal wood is a perennial plant takes at least 15 years for harvest.

Which Part is Useful

Parts Used:Heart Wood and Sap Wood. The heart wood is a yellowish brown 

or orange color.Sap wood is lighter in color and used in ornamental items and 

furniture, carved boxes, jewel cases, combs, hand fans and walking sticks etc.

Experts in this field

Developed by Dr. S.Viswanath, Scientist-E, TIP Division, IWST 

Dr. Geeta Joshi, Scientist-E , TIP Div, IWST 

Dr. T.S. Rathore (formerly Scientist F & Head, TIP, Div, IWST) Director, AFRI, Jodhpur 

Dr. D. Annapurna, Woman scientist (WOS scheme) , IWST 

Information compiled by Dr. S.Viswanath, Dr Geeta Joshi, Dr A.N. Arun Kumar, Dr Ashutosh Srivastava, TIP Division, IWST

Sandal plantation Economics

Financials 

For the farmer who prefer regular cash flow, the sandal+amla+horsegram in a 15 rotation is recommended. 

The total cost of cultivation over the 15 year period + The other costs involved are solar fencing, Water Storage, Drip Irrigation, Men Security, Dog Security, Electricity, Insurance & Interest.

Of the total cost nearly 50% works out to be protection costs. 

The revenue from sandal tree extraction and processing in 15th year works out to Rs 25,000/per KG in 2030 (25 Kg per tree) (sapwood, heart wood and mixed wood including). In the 15th year Rs 70,00,000 for 12 plants can be expected. 

Why we should purchase from a Nursery only? What makes the difference?

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.

Spacing Requirements

Sandal plantation Technology

Sandalwood offers great scope for agroforestry. 

The potential of the tree for integrating in existing farming or silvi-horticultural systems with horticultural plants as secondary host is huge given the adaptability of this species to low rainfall areas and less endowed soils. 

This is a species that is suited especially in semiarid rainfed zones which comprises majority of the farmlands in India. 

IWST has standardized a technology package for sandal cultivation in such areas with appropriate secondary host plants through on-farm trials. 

In sandal agroforestry, a spacing of 6x3 m with amla at the same spacing in between sandal in quincuncial design of planting appear to be promising. 

This spacing also ensures cultivation of agricultural crops like horse gram or field bean or low spreading legume fodder during the initial years. 

The cost of raising sandal based agroforestry plantations may be marginally higher than raising sandal block plantations due to additional intercultural operations. 

However this may be more than offset by periodic additional returns from horticultural crops. 

Sandal plants can be expected to establish and perform well with intercropping since periodic intercultural operations improve soil physio-chemical properties.

Technology transfer IWST has vast experience in raising quality planting material of various commercially important species. As a policy IWST encourages entrepreneurs/ farmers/ plantation companies/ SFDs to join hand with IWST to commercially exploit the technique developed at this institute for raising QPM of sandal and establish commercially viable sandal cultivation practices as a complete package to commercial advantage. 

Images from Nursery

Nursery technology for raising QPM stock

IWST has standardized nursery practices to raise quality seedlings of sandalwood. 

Seed collection, handling, storage and germination methods have been standardized in IWST after a series of nursery experiments.

Fresh sandal fruits are collected from IWST seed collection areas, which includes grafted clones of plus trees from Karnataka, Andhra Pradesh and TamilNadu and Kerala and seedling seed orchard (SSO) from established in 2005. Currently in clonal germplasm bank 44 clones with 307 ramets from Karnataka (18 ), Tamil Nadu 23 clones, two from Kerala and one from Andhra Pradesh 

Technology Package for Raising Sandal Plantations from Quality Planting Material (QPM) Stock of Sandalwood Seedlings 

Nature of technology Santalum album is a commercially important species for its oil and medicinal properties. IWST has developed cost effective package of practice for raising model sandal plantations with horticultural species as secondary host from Quality planting material (QPM) stock of sandal seedlings raised in IWST nursery and is disseminating this complete technology package to end users/stakeholders. 

A. Process in brief Introduction :

Sandal (Santalum album L. or East Indian sandalwood) can be considered as one of the world’s most valuable commercial timber. The species is quite hardy, can grow in dry and degraded lands and over a variety of soils, it has potential to grow in combination with horticultural species as secondary hosts. Sandalwood (Santalum album L.) is commercially valued globally for heartwood and oil. Indian sandal (Santalum album L) is considered best and is highly prized for its superior quality oil. Current value of heartwood is Rs.3500- 5000/kg in India. International prices are 20% higher and in excess of Rs 1,00,000/kg for sandal oil. Sapwood finds utilization in carving and turnery and is recognized as one of the finest woods for carving. Due to over exploitation the species has been categorized as vulnerable by International Union for Conservation of Nature. Government policies have been relaxed to revive this important species in Karnataka and Tamil Nadu which are the main sandalwood growing states have been initiated in 2001 and 2002. Seeing its huge potential, other states have also shown keen interest in establishing sandalwood plantations. There is an increasing demand for the seedlings of this species over the past 5-6 years from all over India, but there is lack of a complete package of practices for growing sandalwood which includes raising of QPM of sandal and establishment of sandal plantations with secondary hosts at appropriate spacing. This has been standardized in IWST and the complete package is ready for dissemination.

Present status 

This tree is found in dry deciduous forests of Deccan plateau of India to an extent of about 9000 km2 and the states of Karnataka and TamilNadu alone account for 8200 km2 of natural sandalwood forests. It is also though found in Kerala, Maharashtra, Madhya Pradesh, Orissa, Uttar Pradesh, Bihar and Manipur. Due to over exploitation the species has been categorized as vulnerable by International Union for Conservation of Nature. Government policies have been relaxed to revive this important species in Karnataka and Tamil Nadu which are the main sandalwood growing states have been initiated in 2001 and 2002. Seeing its huge potential other states have also shown keen interest in establishing sandalwood plantations. There is an increasing demand for the seedlings of this species over the past 5-6 years and National Medicinal Plant Board through its subsidiary state medicinal boards has initiated various schemes to promote sandal cultivation.

Potential of the species 

Sandal is a suitable candidate for dry land agriculture areas and in agroforestry systems like silvi-horticulture, since 

• • It is quite hardy • Can be grown in combination with horticultural species as secondary hosts
• • Not demanding in respect of nutrients and moisture 
• • Can grow in dry and degraded lands 
• • Grows over a variety of soils 
• • Even if browsed and hacked it recovers quickly 
• • Can profusely produce root suckers 
• • Even the sapwood will yield considerable earnings (for agarbatti making and handicrafts)

The problem

The potential of the tree in existing farming or horticultural systems for improving livelihood and creating employment opportunities and enhancing farm incomes is quite huge. However, availability of Quality planting material (QPM) of sandal from known sources is one the main bottle neck hampering its wide scale cultivation. Traditional methods of preparing potting mixture and sowing in standard size polybags do not work for raising sandal seedlings since it is a hemi-parasite. Standardization of nursery technology for raising good quality seedlings of sandalwood becomes necessary in such a scenario.

 

Sri Gandham - Indian Sandal Wood (santalum album cultivation

Sri Gandham - Indian Sandal Wood (santalum album cultivation

World’s most popular and costliest wood is sandal wood. Sandal is widely known as Chandanamu, Srigandhamu in south India and Chandan in North. It is one of the renowned trees from ancient days. Hindus use this wood and its paste for pooja and religious use. Sandal wood is a small evergreen tree, and partial root parasite, attaining a height of 12-13 meters, with slender drooping as well as erect branching. The tree starts flowering at an early age of 2 to 3 years, Fruit is drupe, purplish, when fully mature and single seeded.

1.1 Botanical Name: Santalum album Inn.

1.2 Family: Santalaceae

1.3 Regional Names:English : Sandal tree, White sandal tree.

Hindi :Safed Chandan, Santal.

Gujarathi :Sukhad.

Telugu :Chandanamu, Gandhapuchekka, Sri Gandhamu

Kannada :Bavanna, Srigandadamara, Agarugandha, Srigandha.

Tamil :Chandanam.

Malayalam :Chandanam

Pragmatic loosening of state clamps encourages commercial plantation, but much remains.

The severe shortage of sandalwood (chandan), hitting user industries like perfume, soaps and medicine, has encouraged pragmatic changes in the rules on cultivation, encouraging the corporate sector to embark on plantation of the endangered wood species.

There are no clear statistics on the extent of sandalwood cultivation in India. It is estimated, however, that in recent years, there has been new plantation on as much as 15,000 acres in southern states and parts of western and northern India.

Companies and a host of individual farmers with large land holdings have taken up commercial plantation of sandalwood in the states of Madhya Pradesh, Rajasthan, Karnataka, Andhra Pradesh, Gujarat and Maharashtra. Significant, since the sector was under strict government control; the wood can still be sold only through government auctions anywhere.

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.