Did you know that 1 Kg of quality heartwood roughly fetches INR 10,000 to INR 20,000? Or, for that matter, sandalwood oil can sell for INR 1,50,000 to INR 2,50,000 per liter?
Popularly known as ‘green gold’, white sandalwood is one of the most expensive and highly demanded timber species. The benefits of white sandalwood plantation include its high commercial value and growing market demand. However, sandalwood harvesting in India has been restricted and regulated by the government for several decades, leading to limited production. This scarcity, combined with rising global demand, has further increased its market value.
Benefits of White Sandalwood Plantation
Excellent ROI
There is a steady demand for sandalwood heartwood and sandalwood oil from the cosmetics, luxury perfumes, and traditional Indian medicine (Ayurveda) industries. These products are also bought by end users for performing religious activities and rituals. This increasing market demand in India and across the world is an excellent growth driver, making it a lucrative investment proposal and attracting investors in large numbers towards white sandalwood cultivation.
If done systematically and professionally, white sandalwood farming can fetch you whopping gross revenues of roughly ₹50 lakh to ₹1.5 crore per acre over a 12-15 year harvesting cycle.
Dual Asset Advantage
As the sandalwood saplings in your plot grow and mature into trees over the years, so does the freehold land you own appreciate, making it a win-win situation for you!
Intercropping Benefit
Sandalwood is essentially a root-parasitic plant, which means it obtains some or all of its nutrients, water, and minerals from the root system of another living host plant. Capitalizing on this biological characteristic of sandalwood, it is possible to generate short-term agricultural income by cultivating pulses, vegetables, or different types of fruits.
Government Subsidy
Government support for white sandalwood farming is available under several central and state schemes. These include:
- Financial assistance by the National Medicinal Plants Board (NMPB)
- Up to 75% subsidy for growers in specific states like Maharashtra and Gujarat by the Ministry of AYUSH
- Financial support in the form of project loans and refinancing from the National Bank for Agriculture and Rural Development (NABARD)
- National Horticulture Board (NHB) assistance for buying quality seedlings
Risks Involved in White Sandalwood Plantation
Long Turnaround Time: Cultivating and harvesting white sandalwood is a long-drawn process that stretches to about 12-15 years. Capital remains locked up during this extensive gestation period.
Protection: A highly valuable item commanding an exorbitant market price, sandalwood is prone to theft, necessitating costly and continual surveillance of the farmland premises.
Regulatory Considerations: Being a regulated species, harvesting and transportation of white sandalwood requires the State Forest Department’s permit. Moreover, these rules and regulations vary from state to state – there is no uniform law applicable everywhere in India.
Pricing Pitfalls: Though white sandalwood is a valuable and priced commodity, no one can assure or guarantee the price of sandalwood 12 to 15 years down the line. Also, aspects such as oil content and heartwood development play a key role in determining the pricing.
Pests and Diseases: White sandalwood trees are susceptible to fungal infections and the sandal spike disease, which can annihilate the yield. Also, not all planted saplings can survive and grow fully.
Climatic Considerations: Excessive, continuous rainfall or waterlogged soil causes fungal rot and decay, thus posing a threat to healthy sandalwood growth.
At Blissland, Help Is at Hand!
White sandalwood cultivation calls for in-depth planning and skillful execution. It’s a long-term, strategic activity where core expertise and professionalism are paramount.
At Blissland, we understand that investors don’t know the ABCs of white sandalwood farming. Our team of professionals takes care of everything, including pre-plantation activities, plantation, nurturing, security, and regulatory compliance. With Blissland by your side, your cherished dream of long-term wealth creation indeed becomes a vivid reality.