Sandalwood License, Loan in India: Number

of Sandalwood Trees, Cultivation Profit Per

Acre, Weight after 10 and 15 Years
Welcome to our blog on Sandalwood License and Loan in India! If you're interested in learning
about the ins and outs of sandalwood farming and the financial options available to those who
want to enter the industry, you've come to the right place.

Sandalwood, also known as Chandan, is a valuable tree species grown in India for its fragrant oil
and wood. It is an important crop for farmers, as the demand for sandalwood products is high
domestically and internationally. However, starting a sandalwood farm can be a significant
investment, and it's essential to understand the various licenses and loans available to help
farmers get started.

This blog article will discuss the different types of licenses required to grow and harvest
sandalwood and the various loan options available to farmers. We'll also be sharing tips and
advice from experienced sandalwood farmers, so you can get a sense of what it's like to start and
run a sandalwood farm.

This blog is a great resource for anyone interested in sandalwood farming, whether you are an
experienced farmer looking to expand your crop or a first-time farmer looking to start a new
business. So, let's explore the world of sandalwood!

Explanation of Sandalwood and its uses

Sandalwood, commonly known as "Chandan," is an evergreen tree native to India that grows
slowly. The tree is well-known for its aromatic wood and oil. The oil is used in fragrances,
cosmetics, and incense. In contrast, wood is used for carving, religious rites, and Ayurvedic
medicine.

Sandalwood oil is extracted from the tree's heartwood, the deepest layer of wood produced only
after reaching maturity, which can take up to 30 years. As a result, sandalwood is a valuable and
in-demand product. Traditional medicine also uses oil to treat several diseases, such as
respiratory difficulties, skin concerns, and stress-related disorders.

Sandalwood is a very important tree for the environment and its medicinal and aromatic uses. It
has a deep taproot that aids in soil stabilization and erosion prevention. The tree also improves
soil fertility and serves as an excellent shade tree.

Overall, sandalwood is a versatile and valuable tree species with several applications and
advantages. Its cultivation and harvesting can give farmers an economic opportunity while
contributing to environmental protection.
Importance of sandalwood farming and market in India
Sandalwood cultivation is a big business in India, where it's one of the most expensive tree
species. The country is one of the world's greatest sandalwood producers, with the majority of
output centered in the southern states of A.P., Karnataka, Tamil Nadu, and Kerala.

Sandalwood goods are in high demand both in India and throughout the world. The oil is used in
fragrances, cosmetics, and incense. At the same time, the wood is employed in several ancient
religious rites and ceremonies. Because of the great demand for these items, the sandalwood
market is expanding, making it a desirable crop for producers.

In recent years, global demand for natural and organic products has increased the sandalwood
industry. As a result, the price of sandalwood goods has risen, making it an even more profitable
crop for producers.

The Indian government has also recognized the value of sandalwood farming. It has created
several initiatives to encourage its development. These include financial aid for planting and
preserving sandalwood trees, establishing research institutes to produce novel sandalwood
species, and implementing stringent restrictions to prevent illicit logging and sandalwood
smuggling.

Despite the rising market, the sandalwood cultivation sector in India has hurdles. The expensive
cost of growing and maintaining sandalwood trees is one of the key hurdles, making it difficult
for small-scale farmers to enter the sector. There is also the issue of illicit logging and smuggling
of sandalwood, which can lead to a supply deficit and push up costs.

Licenses required for Sandalwood farming

Growers' declaration: Anyone who wants to plant sandalwood trees on their property must get
a cultivation permit. The Forest Department issues the license, usually suitable for ten years. If it
runs out, it can be renewed. When you apply for a cultivation license, you must include a
detailed plan of the sandalwood plantation you want to start, as well as any other paperwork that
backs it up.

A person who wants to grow sandalwood trees for trade must sign a Declaration of Sandalwood
Ownership form. This form needs to be sent to the Forestry Division. It needs to include
information like the landowner's and grower's names, the location and description of the
property, and the type of timber right the landowner gave to the grower. This declaration must be
submitted before or when harvesting a sandalwood tree. The Forestry Division will then register
the declaration after confirming that the person is a registered trader and that no other declaration
has been registered for the same property.

Harvesting license: This license is required for anyone who wants to cut down and harvest
sandalwood trees. The license is also issued by the Forest Department and is typically valid for
one year. It is renewable on expiration.
When harvesting sandalwood, it must be done selectively, and certain conditions must be met.
These include: using existing tracks and walk-over practices for access, harvesting only on
slopes less than 25 degrees, using rubber-tired machines, only harvesting dead sandalwood or
live sandalwood that is at least 12cm in diameter, utilizing all commercially viable material from
the harvested shrubs, minimizing damage to retained vegetation, avoiding pulling the shrubs
when it may cause soil erosion, and being consistent with watercourse protection guidelines.

Transportation license: This license is required for anyone who wants to transport sandalwood.
The license is also issued by the Forest Department and is typically valid for one year. It is
renewable on expiration. To get a transportation license, you must send in some documents, such
as proof that you own the sandalwood you are transporting and a detailed plan of the route you
will take.

An application form and supporting documents must be submitted to the appropriate authorities
to apply for a license. The property on which the sandalwood trees are produced must be proven
legally owned, and any necessary permissions or certificates must also be presented.

Planting Sandalwood Trees?

Seeds sow sandalwood trees. Sandalwood seeds can be collected from 15–20-year-old plants in
August–March.

Before seminating on nursery beds, seeds are well-treated and sun-dried. The nursery has two
sandalwood seed beds. Dugouts Seedlings grow to 30–35 cm on nursery beds in 7–8 months and
are ready for the main field.

Dig a 45 x 45 x 45 cm hole for sandalwood seedlings while preparing soil or ground for
agriculture.

Before planting seedlings, make sure the pits are watertight. If pits have water, they stay
underground for days. Keep 10 feet between plants. Sandalwood trees bloom after four years.

How much does a baby plant of sandalwood cost?

Buy authentic and certified sandalwood baby plants to cultivate them.

The most valuable plant in India is sandalwood, but you need more plants for commercial
cultivation. For a commercial plantation, you need to grow several plants on your farm. Thus,
you can get a baby plant for Rs. 85-100 from a reliable provider.

The harvesting time of Sandalwood Tree

Sandalwood trees take approximately 30 years to mature and are ready for harvesting. The tree's
heartwood is harvested using tree-cutting instruments, and the softwoods are removed before the
heartwood is taken to the mill.
Sandalwood yield per tree
Generally, 400 to 440 sandalwood tree plants can be grown on 1 acre of land. Sandalwood trees
take a long time to grow and yield profit, but with proper climate, soil, and irrigation, they can
grow 5 cm in girth per year. The weight of wood produced after 10–15 years is 2-4 kg of
heartwood. The yield per tree can range from 10 to 25 kg of wood, depending on the tree's
growth.

The selection of the area, the particular species of sandalwood, host plant management, irrigation
management, pest and disease control, and tree age all affect the development and yield of
sandalwood trees.

Tree Age (years) Girth (cm) Heartwood Yield (kg)

10 10 1

20 22 4-7

30 33 10-15

40 44 20-25

50 55 30

Subsidy and loans for Sandalwood cultivation in India

For farmers interested in growing sandalwood, there are numerous government programs and
financial aid available in India. Sandalwood is a precious resource for the nation and an essential
source of revenue for farmers. Hence the government offers loans and subsidies to promote its
growth.

Sandalwood cultivation is subsidized by the AYUSH Ministry of India's National Medicinal

Plants Board (NMPB) and is autonomous. It was founded in 2000 to promote medicinal plant
cultivation, conservation, and sustainable use in the country. The board promotes medicinal plant
production, conservation, and use. The NMPB funds medicinal plant production and
conservation for farmers, businesspeople, institutions, and organizations. It provides technical
help for medicinal plant cultivation, training, research and development, and traditional
knowledge propagation.

The production of sandalwood and other non-timber forest products is supported by loans from
the National Bank for Agriculture and Rural Development (NABARD).

The National Horticulture Board (NHB) offers financial aid for planting sandalwood nurseries
and purchasing seedlings.
You can directly contact these banks for more current subsidy or loan information.

Sandalwood farmers' problems:

 Finding land and securing licences and permits can be difficult.
 Small farmers have trouble financing/security their farms.
 Pests and diseases make sandalwood tree care difficult.
 Sandalwood processing requires expensive equipment and expertise.
 Small-scale growers may struggle to find the suitable sandalwood market.
 Sandalwood trees mature in 15–30 years, making them a long-term investment.

Sandalwood Plantation Cost And Profit

Cost of Sandalwood tree cultivation
The cost of sandalwood tree cultivation can vary depending on various factors, including:

 Plant cost and Host plant: The cost of purchasing sandalwood seedlings or saplings can
vary depending on the source and quality of the plants. Each plant costs around Rs.80. for
one acre of 400-440 trees. It is Rs. 33,500, Host plant 440X15= 6,600
 The labor cost of planting: This includes the cost of hiring labor to plant the trees and
maintain the plantation for 12 years is Rs. 1,44,000
 Drip cost: If a drip irrigation system is used, the cost of installation and maintenance
must be considered as Rs. 95,000.
 Soil working: This includes the cost of preparing the soil for planting, such as tilling,
fertilizing, and adding amendments costs around Rs.45,000
 Weed control: The cost of controlling weeds can vary depending on the methods used
and the size of the plantation and cost Rs. 35,000
 Pests/disease cost: The cost of controlling pests and diseases can vary depending on the
type of pests and diseases present and the methods used to control them, costing Rs.
40,000.
 And other Miscellious Rs. 1,00,000

The total cost of Sandalwood for Cultivation is Rs. 5,00,000

Cost of Sandalwood Tree Cultivation

Item Cost (INR)

Plant cost and Host plant 33,500

Labour cost of planting 1,44,000

Drip cost 95,000

Soil working 45,000

Weed control 35,000

Pests/disease cost 40,000

Miscellaneous 1,00,000

Total cost 5,00,000

Income from Sandalwood

The expected yield of sandalwood per acre is 5000 kg, and the cost of sandalwood heartwood is
6,500 INR/kg.

So, one acre of sandalwood plantation is expected to bring in a total of 5000 x 6500 =
32,500,000 INR. (After 15 to 20 years)

let's Consider land is Rented and costs Rs.15,00,000 for 20 years

Income from Sandalwood

Yield (kg) Price (INR/kg) Income (INR)

5000 6,500 32,500,000

Profits on Sandalwood
Total cost/expenditure + Land costs = 5,00,000 INR + 15,00,000

= 20,00,000

Profit: Rs. 3,25,00,000 – 20,00,000 = Rs. 30,50,000/acre.

Profit from Sandalwood

Item Cost (INR)

Total cost/expenditure 5,00,000

Land cost (20 years) 15,00,000

Total cost 20,00,000

Profit 30,50,000

Conclusion
Indian sandalwood farming is both profitable and long-term. You must, however, understand the
licensing and legislation governing sandalwood growth, harvesting, and shipment. Follow the
requirements and obtain the necessary permits. Your operations will be under the Indian Forest
Act. To maximize your sandalwood farming venture, you must first grasp your loan options and
follow expert farmer advice. With the right knowledge, resources, and help, anyone can start and
run a lucrative sandalwood plantation in India.