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.