Earn up to 5 Crores with Sandalwood Plantation Business.


Sandalwood business for profit (Photo: Krishi Jagran)
Sandalwood business for profit (Photo: Krishi Jagran)

In today’s dynamic economic landscape, forward-thinking entrepreneurs are constantly looking for new ways to increase their revenue streams and expand their financial portfolios. In the era of innovative entrepreneurship, the trend of doing side business has gained significant importance, giving individuals the opportunity to turn their passions and skills into profitable enterprises.

People look for different ways to generate income, including rental income and real estate investments for online businesses. Another lucrative sector is the production of sandalwood, known for its high value and distinctive fragrance. However, success in this industry requires patience due to its unique demands and global popularity in various product applications.

Sandalwood Plantation Business: Method of Production

The sandalwood plantation business relies on careful and strategic production methods that begin with the selection of suitable tropical or subtropical locations with specific soil and climate conditions. High-quality seeds or plants are selected to ensure genetic diversity and quality, and are raised in nurseries before transplantation to the main plantation. Regular maintenance, including irrigation, pest control, and pruning, is necessary to maintain tree health and maximize the production of valuable, oil-rich heartwood.

This production method requires a long-term perspective as sandalwood trees take years, often decades, to mature and produce valuable heartwood. Sustainability is ensured through patient and planned harvesting, where the precious heartwood containing sandalwood oil is carefully extracted. After harvesting, a complex processing and distillation process yields the desired essential oil, which is the primary product of the industry. Sustainable practices are critical to managing the entire production cycle and meeting global demand while conserving this precious resource for the future.

In the traditional way, it takes about two decades to grow sandalwood trees, while the organic method shortens this timeline to 10 to 15 years. During the first eight years, no additional protection is required.

After that, the trees have a pleasant aroma, and it is at this stage that measures are needed to protect them from possible threats from animals and illegal loggers. A remarkable feature of sandalwood trees is their adaptability to diverse environments except sandy or snowy areas.

Expected Profits from Sandalwood Plantation Business

Sandalwood trees offer substantial returns, with the potential to earn Rs 3 to 5 lakh per tree annually. Planting five to 10 sandalwood trees can yield more than 30 lakhs annually. Annual income for those raising more than 100 trees can reach up to Rs 5 crore. However, it is important to be well aware of government regulations to work in this lucrative industry.

In 2017, the Indian government banned the sale and purchase of sandalwood in India. While you can legally plant sandalwood trees, their sale is prohibited by the government. To do this, you must inform and take permission from the Forest Department, who will purchase sandalwood from you in compliance with these regulations.

First Published: 27 Sep 2023, 15:39 IST


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