In India, sandalwood has been valued for centuries. From temples to perfumes, medicines to cosmetics, this wood and its oil are used everywhere. Because of its demand and limited supply, sandalwood is called “green gold.” Many farmers today are showing interest in sandalwood plantations, not just for its cultural value but also for the high profits it can bring.
Why Sandalwood is So Special
Sandalwood (scientific name Santalum album) is famous for its fragrant heartwood and essential oil. The oil is widely used in Ayurvedic medicines, soaps, and incense sticks. The wood itself is carved into idols, handicrafts, and furniture. Since the demand is always high and natural forests are declining, cultivating sandalwood has become a smart alternative.
Government Rules and Permissions
Earlier, farmers could not grow and sell sandalwood freely because it was a protected tree. But now, many states like Karnataka, Tamil Nadu, and Maharashtra have relaxed the rules. Farmers can register their plantation with the forest department and sell sandalwood legally. This has encouraged people to invest in sandalwood farming without fear of legal hurdles.
Climate and Soil Requirements
Sandalwood grows best in tropical and subtropical regions. It requires:
- Temperature: 12°C to 35°C
- Rainfall: 600–1600 mm annually
- Soil: Red, loamy, or well-drained soil with good sunlight
It is a partial root parasite, which means sandalwood needs a host plant for nutrients. Common host plants are pigeon pea, casuarina, or neem.
How to Start a Sandalwood Plantation
1. Land Preparation – Choose land with good drainage and enough sunlight.
2. Selection of Saplings– Buy healthy, certified sandalwood seedlings from a trusted nursery.
3. Spacing – Usually 10 feet × 10 feet spacing is followed, which allows around 400 plants per acre.
4. Host Plants– Plant suitable host species along with sandalwood for better growth.
5. Maintenance – Regular weeding, irrigation, and protection from pests like leaf miners and spike disease are important.
Time for Harvesting
Sandalwood is not a quick crop. It requires patience. The heartwood starts forming after 10 years, but the best yield comes at 15 to 20 years. A fully grown tree can weigh 60 to 80 kg of heartwood.
Profit from Sandalwood Farming
This is where the real attraction lies. Let’s understand with an example:
- Cost of planting one acre: Around INR 1.5–2 lakh (including saplings, host plants, maintenance, etc.).
- Number of trees in one acre: About 400.
- Average yield of heartwood per tree: 15–20 kg after 15 years.
- Market price: Sandalwood heartwood is sold at ₹3,000–8,000 per kg (depending on quality).
So, even if we take the lower side—
400 trees × 15 kg = 6,000 kg heartwood
6,000 kg × ₹3,000 = ₹18 crore in 15 years from one acre
Even after expenses, the profit margin is massive compared to other crops. Sandalwood oil fetches an even higher price, making it more profitable if processed.
Challenges in Sandalwood Farming
Of course, the journey is not without risks.
The long waiting period of 15–20 years requires patience and financial stability.
Protection from theft is a big concern because of its high value. Farmers often need fencing, guards, or CCTV.
Pests and diseases can reduce yield if not controlled.