Agriculture

Sandalwood Cultivation in India: High Value Returns for Farmers

Updated on 24th August, 2026, By Abhijeet Warak
Share
Share
Sandalwood Cultivation in India: High Value Returns for Farmers

Sandalwood is a highly valued tree famous for its heartwood and sandal oil. It is a popular medicinal and therapeutic tree famous for its healing properties and unique fragrance. It is one of the costliest woods in the world. In this blog, we will discuss its medicinal uses, the step-by-step cultivation process, and the estimated economic returns from cultivation. 

Sandalwood Cultivation: At a Glance

Common Name

Sandalwood (Chandan)

Botanical Name

Santalum album

Plant Type

Medicinal & Aromatic Tree

Major Producing Countries

India, Australia

Major Producing States in India

Karnataka, Telangana, Tamil Nadu, Andhra Pradesh, Madhya Pradesh

Ideal Climate

Warm tropical and subtropical climate

Temperature Requirement

19°C – 28.5°C

Annual Rainfall

500 – 3000 mm

Suitable Soil

Sandy clay, gravelly loam, well-drained soils

Soil pH

Up to 9.0

Altitude

Up to 1,800 metres above sea level

Planting System

Pure plantation or Agroforestry with host plants

Flowering Period

March–April & September–October

Heartwood Formation

Begins after 7–8 years

Harvesting Period

15–20 years after planting

Main Products

Heartwood, Sandalwood Oil

Major Uses

Perfumes, Cosmetics, Aromatherapy, Pharmaceuticals, Wood Carving

Estimated Returns

Up to ₹15–20 Crore/hectare (under scientifically managed plantations over 15–20 years, as mentioned in the article)

Key Challenges

Theft, Drought, Fire, Root Rot, Illicit Felling

Table of Contents 

What is Sandalwood? 

Sandalwood, popularly known as Chandan, is a highly valuable tree with its fragrant heartwood. It is also used for oil extraction, and sandalwood oil is used in cosmetics, perfumes, aromatherapy, and pharmaceuticals. It is one of the best woods, ideal for carving due to its uniform fibers and close, straight grains. 

Sandalwood is a small to medium-sized tree native to dry, deciduous, and scrub forests in the Deccan region, especially in Telangana and Karnataka. A neutralized population of Sandalwood is also found in Andhra Pradesh, Kerala, Rajasthan, Madhya Pradesh, Bihar, Odisha, and Maharashtra. 

What is the Current Status of Sandalwood Production? 

Globally, India & Australia are the largest producers of sandalwood, while the largest markets are the United States, China, Japan & the Indian domestic market. 

Recently, as part of the ongoing initiative ‘Azaadi ka Amrit Mahotsav’, the Ministry of Rural Development & Panchayati Raj inaugurated a training program on Sandalwood Farming & Management of its health. The program focused on attracting youth to sandalwood farming, reviving this declining art & helping reposition India as a market leader in trade. 

In recent years, sandalwood cultivation has been adopted energetically in Karnataka and Telangana. These two states are now emerging as the primary sandalwood cultivating states in India. 

What are the Medicinal Uses of Sandalwood? 

Sandalwood is a medicinal plant widely used in pharmaceutical industries because of its several medicinal properties. Some medicinal uses of Sandalwood are listed below: 

  • It is used as an anti-inflammatory and helps in reducing pain and swelling. 
  • It is used as an anti-septic that helps prevent infections. 
  • It is quite useful in curing fever when used as an antiphlogistic. 
  • It is a great anti-spasmodic and relieves spam. 
  • It is a diuretic and helps in improving urine discharge. 
  • It is a carminative and can help remove gas from the stomach and intestine. 
  • It helps reduce blood pressure because of its hypotensive nature. 
  • It is a great skin agent that softens and soothes the skin due to its emollient properties. 
  • It acts as a sedative, and its calming effect minimizes stress, anxiety, and irritability. 
  • It also acts as a memory booster and helps improve memory. 

What is the Step-by-Step Process of Sandalwood Cultivation in India? 

Soil, climate, nursery preparation, plantation, etc. are some of the major steps in sandalwood cultivation in India. Let’s understand the step-by-step process below: 

Soil and Climate Requirements 

Sandalwood can be grown in a wide variety of soils, from sandy clay to gravelly loam to soils with poor nutrients. It can withstand a soil pH of 9.0. Sandalwood needs good drainage, and waterlogging is not suitable for its growth. 

Sandalwood can be grown at an altitude of 1800 m above sea level and requires rainfall of 500-3000 mm. The ideal temperature range is 19°C to 28.5°C. 

Nursery Preparation 

Select high-quality sandalwood seeds, depulp them by rubbing, and wash them thoroughly before keeping them dry in the shade. Rats eat away the seeds, and so it is usual to roll the seeds in main red lead or in Acorus paste. Germination takes place 1 to 3 months after sowing. 

Note that sandalwood requires host plants to survive. This makes it an ideal plant for agroforestry. The sandalwood plant spreads roots and attaches to the roots of nearby plants, making those plants available for water and nutrients. The seeds can also be treated with fungicides to prevent infection and stored at 5% moisture and 10° to 15°C in polythene bags or plastic jars. 

Plantation 

The plantation process starts with digging pits measuring 30 x 30 cm and leaving them open for a week. Add 10-15 grams of Phorate and Carbendazim to the pits. Depending on the chosen silviculture system, Sandalwood is planted as a pure block plantation or grown in an agroforestry system alongside horticultural crops such as mango, citrus, and guava. It is also grown with forestry species, such as casuarina and pongamia, as permanent hosts. Sandalwood trees start flowering after three years of age and flower twice a year, from March to April and September to October. 

Irrigation and Fertilizer Management  

Sandalwood cultivation requires very less water, so drip irrigation every 2 to 3 weeks is recommended. For Fertilization, apply 15 to 20 kg of organic fertilizers regularly, such as farmyard manure, vermicompost, or neem cake. Inorganic fertilizers, especially NPK, can also be applied to seedlings after formation at a rate of 150 to 200 grams per plant. 

Sandalwood Plant Protection 

  • Theft Risk: Due to its high value, sandalwood trees are at risk of theft, so you can employ protection in various forms, such as barbed wire fencing, solar electric fencing, armed security guards, dog hunting, patrols, and more. 
  • Drought: It can withstand moderate drought, but prolonged drought kills it. 
  • Fire: It is a fire tender and should keep away from dry bushes, grass, etc. 
  • Diseases: Diseases such as insect attacks or root rot can harm the plant, so keep spraying neem cake or any other fertilizer. 
  • Illicit Felling: As sandalwood is a scented wood, illicit felling may occur. 

Harvest and Yield 

Normally, heartwood formation begins after 7 to 8 years, and harvesting begins after 15 to 20 years of plantation. The development of heartwood, its total content, and oil content depend on climate and soil conditions. In hot, dry conditions, heartwood formation begins early. 

What are the Estimated Economic Returns from Sandalwood Cultivation in India? 

The total yield of heartwood and sandalwood oil may vary by location. The natural forest growth data states that 4 to 10 kg of heartwood per tree is obtained from 20 to 30-year-old sandalwood trees. In 2008, the IWST Bangalore earned Rs. 1.43 crores per hectare in total returns, assuming 3 to 4 kg of heartwood per tree at a procuring rate of Rs. 3500 per kg. 

Another report from 2017 estimated returns of Rs. 2.98 crore per hectare, assuming a price of Rs. 6000 per kg of heartwood and 15 kg of heartwood per tree. It also includes security costs, which account for about 30% of total returns. 

According to recent studies, sandalwood cultivation under scientifically managed plantations can yield 15 kg of heartwood per tree with a GBH of 45 cm at 15 years of age. According to the Karnataka forest department, the estimated return is around Rs. 15 to 20 crores per hectare over a 15 to 20-year rotation. 

National Trade of Sandalwood 

At present, the price of Indian sandalwood of I-class heartwood is around Rs. 7,500 per kg, and the price of sandalwood oil is around 1,50,000 per kg according to the government rate. In the domestic market, the price of sandalwood is around Rs. 16,500 per kg. Its price in the international market is around 15-20% higher than the domestic rate. 

Which are the Major Sandalwood Plantations in India? 

According to the Indian Council of Forestry Research and Education, the total land under sandalwood cultivation in India is increasing by 600 hectares annually. Today, the total area of sandalwood plantations in the country is approximately 17,432 hectares. The major plantations are listed below: 

Major Sandalwood Plantations 

Area (in hectares) 

Karnataka  

10,400 

Telangana  

5,104 

Tamil Nadu

410 

Madhya Pradesh 

410 

Andhra Pradesh 

160 

Frequently Asked Questions On Sandalwood Cultivation in India

1. Sandalwood Cultivation in India Which state is the largest producer of sandalwood in India?

Karnataka is the largest producer of sandalwood in India. 

A sandalwood tree requires 12 to 20 years for its growth. 

Mysore is called the city of Sandalwood. 

Yes, sandalwood thrives best in hot temperatures and requires 6 to 8 hours of sunlight daily. 

The sandalwood plant generally requires a host plant for its proper growth. 

Sandalwood trees have a biological life span of 50 to over 100 years.

The best fertilizer for sandalwood is well-rotted organic farmyard manure (FYM) or vermicompost. Apply 1 kg to 2 kg of vermicompost or FYM around the base of the tree every 6 months. 

Sandalwood grows best in warm temperatures, with well-drained; tolerates mild salinity. 

Abhijeet Warak
Published By
Abhijeet Warak
Abhijeet holds an M.Tech degree and has over 3 years of experience working in the vehicle and agriculture ecosystem, with hands-on exposure to tractors, farm machinery, and commercial vehicles. Driven by a strong passion for the vehicle industry and agriculture, he explains technical and Agri-related topics in a clear, practical, and user-first manner. Currently, he works as a Content Manager.
Read More About Abhijeet Warak


Popular Blogs


Other Articles By Category

Disclaimer
The Website is only providing services by providing indepth & well-researched information on various vehicles and implements to the Users. If you express your interest in any of the vehicles or implements whose information is provided on the Website, Your details shall be shared as a sales lead for TVS Credit. The Website neither facilitate, in any manner, the purchase and sale of any vehicle or implement whose information is displayed and does not as a 'live/online marketplace' in terms of Information Technology Act, 2000 (as amended from time to time) nor provide loans.
All images displayed on this Website are for illustration and representation purposes only. Actual vehicle, specifications, colors, and features may vary from those shown in the images. Tractorkarvan does not guarantee that the images accurately reflect the final product.
*The price disclosed against the each used vehicle /product displayed herein is the Base Price. The final price of the each of the product shall be determined in accordance with the Residual Management Policy of TVS Credit Services Limited.
The price disclosed against all new products herein is an indicative Price. The final price of each of the respective product will be determined in accordance with the discounts/offers/regional taxes & govt. norms at your final purchase location's dealership/platform/store.
Request Callback