Sandalwood Farming: Unlock Earnings in Lakhs

12 Nov, 2024

Indian sandalwood ranks among the most expensive commodities sourced from the forest. Sandalwood tree farming is a highly lucrative industry in India, attracting both farmers and investors.

Sandalwood is utilized in religious ceremonies, cosmetics, and pharmaceuticals due to its pleasing fragrance and therapeutic properties. If you know the correct method of Sandalwood farming and take care of your plants, growing chandan trees can make you vast amounts of money, often in the lakhs.

This article will tell you everything you need to know about sandalwood farming, from the weather to how much money you could make. Here, we also give you tips on how to make this business last and make money.

Introduction to Sandalwood Farming

Sandalwood, also called "liquid gold," has been sought after since the Middle Ages. People all over the world, including in the United States, want sandalwood a lot, making growing it a profitable business.

The Indian Sandalwood (Santalum album) is very popular. It is further classified into Red Sandalwood and White Sandalwood. White sandalwood (safed chandan) is grown in Northern India while Red Sandalwood (lal chandan) is grown popularly in Southern India. 

You must have seen Red Sandalwood in the Pushpa movie. Farmers can make a lot of money from growing Chandan trees. If you grow it correctly, you can easily earn lakhs.

Ideal Climate and Soil Conditions for Sandalwood Cultivation

The best places for Sandalwood (Chandan tree) to grow are semi-arid to tropical regions, with temperatures between 12°C and 35°C. It needs a modest amount of rain each year, ideally between 600 and 1,600 mm. 

Too much water can harm its roots. If you're thinking about growing sandalwood, it's a good idea to pick a place with a nice, clear dry season. Sandalwood thrives in sandy, loamy soils with a pH level between 6.0 and 7.5.

This breed is semi-parasitic and eats host plants. Pick a host plant like pigeon peas, acacia, or casuarina to help it grow and produce more. The best places to grow sandalwood in India are Tamil Nadu, Karnataka, Andhra Pradesh, and Maharashtra.

Types of Sandalwood

There are two main types of sandalwood grown by farmers:

• Indian Sandalwood (Santalum Album):

It is the most common and expensive type of Sandalwood. It is valued for its strong scent and high oil content. It comes from northern and southern India and is very popular worldwide. 

South Indian farmers grow Red Sandalwood (Lal Chandan) in soil with 4.5 to 6.5 pH. While North Indian farmers grow White Sandalwood (Safed Chandan) in soil with 7.5 pH.

• Australian Sandalwood (Santalum Spicatum):

The Australian type of sandalwood smells a bit like Indian sandalwood, but it has a little less oil. Though it still makes money, it doesn't sell for as much as Indian sandalwood.

Indian farmers should focus on the Santalum album because it has a higher market value and demand.

Step-by-Step Guide to Starting a Sandalwood Farm

• Land Selection:

Pick a land with the right weather and soil factors listed above. When you prepare the land, ensure it has good drainage and test the soil for its pH level and nutrient content.

• Sapling Selection:

You should only buy healthy sandalwood saplings from approved farms. The plants should be at least a year old for a better survival rate.

• Planting Method:

Sandalwood is partly parasitic and needs host plants to grow. When the host plants are planted, one sandalwood plant should be planted for every five of them. 

• Irrigation and Maintenance:

Even though sandalwood can survive in dry conditions, young plants need to be watered. In the first few years, drip irrigation is highly suggested. Weeding is needed to ensure proper growth.

• Security and Licensing:

Since sandalwood is a valuable crop, the farm needs to be properly fenced off to keep thieves out. Also, have government licenses as the sandalwood trade is regulated in India.

Investment and Initial Costs in Sandalwood Farming

Starting a sandalwood farm costs a lot of money at first, but the returns are great. Usually, the prices cover:

• Land Preparation: ₹30,000 to ₹50,000 per acre
• Saplings: ₹50 to ₹150 per plant, depending on the quality
• Irrigation Setup (Drip System): ₹60,000 to ₹1,00,000 per acre
• Labour and Maintenance: ₹10,000 to ₹20,000 per year

Depending on the area and facilities, the total cost of a 1-acre farm can be anywhere from 2 lakh to 5 lakh.

Growth Timeline: When to Expect From Your First Harvest

Farming sandalwood takes a long time. The trees take 12 to 15 years to grow up, during which time the heartwood grows fully. It may seem like a long time to wait, but the benefits are more than the makeup for it.

• Within three to five years, the Chandan tree has experienced tremendous growth; yet, the heartwood is not yet ready to be cut to size.
• After eight to ten years, the heartwood starts to develop. After a period of twelve years, the tree is now prepared to be cut down. The proper maturation of the heartwood takes place at this time.

Potential Earnings: How Sandalwood Farming Can Yield Lakhs

Farming sandalwood is a great way to make a lot of money. Heartwood from a fully grown sandalwood tree costs between ₹3,000 and ₹7,000 per kg and weighs between 15 and 20 kg. When the trees are harvested, they can bring in ₹1 lakh to ₹1.4 lakh each.

With about 400 trees on an acre of land, a farm could make between 3 and 5 crore rupees after 12 to 15 years. Even after costs like investments and upkeep, the profits are still very high, making sandalwood farming one of the most successful ways to make a living as a farmer.

Challenges in Sandalwood Farming and How to Overcome Them

Even though the money that could be made is enormous, growing sandalwood has many challenges:

• Long Maturity Period: It can be impatient to have to wait 12 to 15 years for the first harvest. Farmers can make some extra money by growing vegetables next to sandalwood trees in the early years of their operations.
• Theft and Security: Security is a big concern because sandalwood trees are often taken without permission, given their high value. To reduce this risk, you might want to consider having guards, installing cameras, and putting up some fencing.
• Disease Management: Sandalwood can face a few health issues, like root rot and some fungal diseases. Taking care of your trees regularly and using natural fungicides helps keep them healthy.
• Government Regulations: States in India control the sandalwood trade. To prevent issues, farmers have to follow legal and licensing policies.

Sustainable Practices for Long-Term Profitability

• Organic farming techniques include biofertilizers and organic insecticides to preserve the land and forest’s cleanliness.
• Sandalwood serves to maintain environmental balance by contributing to soil stabilization and water retention. 
• Collecting rainwater and employing drip irrigation to grow more crops for less money are sustainable water management practices.

Conclusion

Sandalwood tree farming can earn lakhs of rupees, making it a lucrative business. Despite the time, a large investment, and careful planning, growing Chandan wood trees is one of the most successful farming methods today. Farmers may maximize profits by choosing the correct location and sustainable practices.