Sandalwood, often referred to as “green gold,” is one of the most precious and highly sought-after commodities in the world. Known for its aromatic heartwood, sandalwood has been a cornerstone of perfumery, medicine, and cultural rituals for centuries. In India, sandalwood farming has emerged as a lucrative opportunity for farmers, offering substantial returns with minimal land requirements. With proper planning and execution, sandalwood farming can transform small-scale farmers into millionaires.
What is Sandalwood Farming?
Sandalwood farming involves cultivating sandalwood trees (Santalum album) for their valuable heartwood and oil. The tree is semi-parasitic, requiring a host plant for optimal growth. Sandalwood farming is a long-term investment, as the tree matures in 15–20 years, but the financial rewards are extraordinary due to the high market value of sandalwood products.
Steps to Start Sandalwood Farming
1. Land Selection
- Climate: Sandalwood thrives in tropical and subtropical climates with temperatures ranging from 12°C to 35°C.
- Soil: The tree grows well in red, sandy loam, or well-drained soils with a pH of 6.0–7.5.
2. Planting Process
- Host Plants: As a semi-parasitic plant, sandalwood requires a host plant like Pongamia or Acacia to extract nutrients.
- Spacing: Maintain a distance of 3×3 meters between saplings for healthy growth.
- Seedlings: High-quality seedlings can be purchased from government or private nurseries.
3. Care and Maintenance
- Irrigation: Regular watering is essential during the initial years, but excessive waterlogging should be avoided.
- Weeding: Periodic weeding is crucial to ensure optimal growth.
- Pest Control: Sandalwood is prone to diseases like spike disease, which can be managed through early detection and treatment.
4. Harvesting
- The tree is harvested after 15–20 years when the heartwood is fully matured.
- Modern methods like heartwood testing can be used to determine the right time for harvesting.
For those interested in learning how organic methods and nutrient management can enhance yield, KhetiGaadi offers counselling and support. Farmers can reach out at 07875114466 or email connect@khetigaadi.com for guidance on improving their agricultural practices.
Profitability of Sandalwood Farming
Sandalwood farming is incredibly profitable due to the high demand and limited supply.
| Parameter | Details |
| Investment Cost | ₹10–12 lakhs per acre over 15 years |
| Average Yield | 500–800 kg of heartwood per tree |
| Market Price (Heartwood) | ₹10,000–₹20,000 per kg (depending on quality) |
| Market Price (Oil) | ₹1.5–₹2.5 lakhs per litter |
| Gross Income (Per Acre) | ₹2–3 crores over 15 years |
| Net Profit | ₹1.5–₹2.5 crores |
With proper planning, even a small plot of land can generate enormous returns.
Benefits of Sandalwood Farming
1. High Market Value
- Sandalwood commands premium prices in global markets due to its scarcity and demand.
2. Sustainability
- Sandalwood farming promotes biodiversity by encouraging intercropping with other species.
3. Government Support
- Various state governments provide subsidies for sandalwood farming, including financial aid for saplings and training programs.
4. Export Potential
- India’s sandalwood oil is highly sought after in international markets like Europe, the USA, and the Middle East.
Challenges in Sandalwood Farming
- Long Gestation Period: The trees take 15–20 years to mature, requiring patience and long-term commitment.
- Legal Constraints: The harvesting and sale of sandalwood are regulated by the government in many states.
- Pests and Diseases: Spike disease and pests can severely impact growth and yield.
Government Subsidies for Sandalwood Farming
- National Agroforestry Policy: Promotes the cultivation of trees like sandalwood with financial incentives.
- Madhya Pradesh Sandalwood Plantation Scheme: Provides saplings at subsidized rates to farmers.
- Tamil Nadu Tree Cultivation Scheme: Offers support for sandalwood plantations and training programs.
Success Stories of Sandalwood Farming in India
1. Ramesh Naik – Karnataka
Ramesh Naik from Tumkur transformed his barren 2-acre land into a sandalwood plantation in 2000. With consistent care and organic methods, he harvested 150 trees after 20 years, earning over ₹5 crores. His success inspired the local community to adopt sandalwood farming.
2. Aditi Shah – Maharashtra
Aditi, a young entrepreneur from Pune, started sandalwood farming on 1.5 acres of leased land. Utilizing agroforestry techniques, she intercropped sandalwood with turmeric and ginger. After 18 years, her harvest fetched ₹3.5 crores, making her a role model for sustainable farming.
3. Mukesh Patel – Gujarat
Mukesh Patel embraced modern sandalwood Cultivation practices on his 5-acre plot in 2005. By employing drip irrigation and pest management systems, he increased the quality of his yield, earning ₹8 crores after 20 years. His success story has been featured in multiple agricultural journals.
Conclusion
Sandalwood Cultivation is a golden opportunity for farmers and investors alike. With proper planning, minimal land, and adequate government support, anyone can achieve financial success through sandalwood cultivation. By embracing sustainable practices and leveraging available resources, farmers can transform their lives and contribute to India’s rich legacy of sandalwood production.
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