Sandalwood tree profit per acre | How to start sandalwood farming

Introduction of sandalwood cultivation

In India sandalwood is also known as “Chandan” and “Srigandha”. It contains two types red sandalwood and white sandalwood. White sandalwood is mostly grown in India due to the soil suitability and appropriate climate conditions however, red sandalwood price is also growing day by day. Sandalwood tree price mainly depends on its heartwood quantity and quality. 

The tree is evergreen and can be grown in any season however, winters are not recommended to grow this precious plant. It grows well in most soils including sandy soil but clay soil is not recommended for growing this plant. While talking about temperature it can be grown between 5° to 47° C therefore it can be grown all over the India you just need to check the soil type and soil ph level. For red sandalwood cultivation ph level between 4.5 to 6.5 is preferred and for white sandalwood plant cultivation ph level more than 7 is suitable. While talking about water you must be relief that this plant hardly needs any water infect you need to protect it from more water so never overwater this plant.  

Where sandalwood trees grow in India - These trees are mostly grown in south region of India however they can grow in north and other regions as well in below paragraph sandalwood growing region are mentioned scroll down or click here (shortcut). 

You must be thinking if it is so easy to grow this expensive plant then why most farmers are not growing it then I would say “hang on” it is restricted to grow in all states by the Indian government however, there are some states where sandalwood cultivation is legal and some more states may join the party. So before starting sandalwood cultivation you need to check the legality of growing sandalwood in your state. Hence, it is recommended to contact your forest, horticulture, agriculture departments for growing sandalwood in your region under the government guidelines.

Sandal wood cultivation 

There are various sandalwood verities available in the world market. Indian sandalwood and Australian sandalwood are most famous among all other verities these both have excellent commercial value in the market. In India sandalwood is available in various colours including white, red and yellow colour. However, these plants are very costly while purchasing and planting at your farm but the good thing is that this plant cultivation gives extreme chance of intercropping. Heartwood, bark and essential oil are the main parts in sandalwood cultivation however, the leaves are used as animal fodder moreover it can be used as organic fertilizer like Malabar neem leaves. Sandalwood production in India is growing day by day.

Click the link to directly reach sandalwood tree planation project report or keep scrolling for other valuable sandalwood tree information

Where is sandalwood grown in India 

Sandalwood grown in india – Karnataka, Telangana, Maharashtra, Madhya Pradesh, Tamil Nadu, Gujarat, Bihar, Andhra Pradesh and now farmers are also growing sandalwood in Rajasthan.

Price of single sandalwood plant 

Chandan plant price – chandan or sandalwood plant price in India is given below 

  • Sandalwood plant price in India - Rs 30, Rs 50, Rs 70, Rs 100

Sandalwood tree price after 15 years - Current price of sandalwood is between Rs 15,000 to Rs 20,000 it may go above Rs 30,000 to 45,000 after 15 years

When to plant sandalwood  

It can be planted through out the year but it is advised not to plant this precious plant in winters.

Spacing for sandalwood plantation 

Spacing depends on your plant quantity for more plants 2.5 and 4 meters, 5 x 10 for better growth

Sandalwood plantation spacing

Generally, 8 to 10 months old seedlings of 30 to 35 cm height are used for transplanting in the main field. These plants are first prepared in nursery beds.

The pits size of 47 x 47 x 47 cm should be dug during land preparation. The plant to plant distance need to be 10 feet.

Sandalwood tree growing period 

Sandalwood tree takes 15 to 20 years to grow mature however; the life of a sandalwood tree is more than 100 years. The price of the chandan tree depends on the oil content of heartwood, maturity plus heartwood weight and it is believed that old trees have more financial values.

How many sandalwood trees per acre 

There is various advises in market people use to say more sandalwood you will plant then more benefit you can gain but it is a myth because sandalwood farming has a different farming modal in this farming modal it needs double host trees or at least equal host trees and if you are not able to plant equal hosts then you should apply 2 : 1 formula means 2 sandalwood plants and 1 host plants this will allow you to provide more space to sandalwood plants.

How many sandalwood plants per acre

You can choose the various sandalwood plantation option

Sandalwood cultivation yield per acre - One can plant around 400 (chandan) x 400 (host) plants with 10 feet distance

standard plantation sandalwood - 300 sandalwood plants and double host plants are required i.e 600 host plants. Therefore 300 sandalwood x 600 host plants. 

Sandalwood and host plant ratio

1 sandalwood : 2 host plant  (Recommended)

1 sandalwood : 1 host plant (good enough)

2 sandalwood : 1 host plant (at least)

Climate required for sandalwood

5° to 47°

Irrigation sandalwood

In sandalwood cultivation water requirement is very low infect you should choose such farm where water could not stand. You should provide little water to your chandan plants and after 6 years you can reduce giving regular water to sandalwood plants. Access of water may cause heartwood rot in sandalwood tree. Sandalwood tree needs only 2 to 3 litre water weekly if you can provide control water to sandalwood tree then there will be hardly any disease in your trees. Moreover, uncontrolled water is the main reason of disease in chandan trees.

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Sandalwood tree soil

Sandalwood soil – However, sandalwood is soil friendly and one can use any kind of soil in sandalwood farming whether it is sandy soil or other soil but you should avoid loamy, clay soil. Sandalwood trees can be grown in any type of drained soil with good organic matter. It is highly recommended to go for the soil test if you are planning for commercial cultivation of sandalwood. Sandalwood soil pH range of 6.5 to 7.5 is preferred.

Red sandalwood plant and White sandalwood plant

Sandalwood is of two types red and white. In India mostly white sandalwood are found due to the appropriate soil and climate.

  • Red sandalwood ph level - pH 4.5 to 6.5
  • White sandalwood ph level – pH level above 7
  • Haryana, Uttar Pradesh and Punjab contain 7.5 ph therefore white sandalwood farming is done in these places.

Land preparation for sandalwood cultivation

Ploughing is the first and very basic step in all type of farming it is done to bring the soil to fine tilth stage. Weed removal process is the next important step in farm preparation. After these two steps prepare the beds in such a way that excess water can drain out quickly in case of heavy rains. You should dig the pits size of 47 x 47 x 47 cm and after digging these pits it is advised to not to plant immediately instead you should check stagnant water in the pits then leave the pits in the sunlight for couple of days so that pests can be destroyed. Sandalwood will start flowering after 4 years of plantation and it will start producing fragrance after 8 year of plantation. To reach these years you should help your plants by removing unnecessary weeds on regular basis followed by controlled water schedule.   

Sandalwood verities in the world

  • Australian Sandalwood ( Santalum spicatum)
  • Indian Sandalwood (Santalum album)
  • Santalum obtusifolium 
  • Baphia nitida 
  • Myoporum platycarpum
  • Eremophila mitchellii
  • Adenanthera pavonina 
  • Myoporum sandwicense 
  • Osyris lanceolata 
  • Santalum haleakalae
  • Santalum lanceolatum 
  • Santalum ellipitisum 
  • Red sandalwood (Petrocarpus santalinus)
  • Santalum austrocaledonicum 
  • Santalum freycinetianum

Health benefits of sandalwood

Sandalwood oil skin benefits

  • Maintains natural glow of skin
  • Helpful in reducing skin wrinkles
  • Skin aging prevention benefits
  • Helps to reduce skin itching and skin infection problem 

Sandalwood oil health benefits 

  • Helpful in maintaining blood pressure level
  • Works as memory booster 
  • Useful in viral infection 
  • Stress and anxiety reliefer
  • Prevents cramp

Sandalwood tree uses

  • Sandalwood trees are mostly used for making perfumes and deodorants 
  • Sandalwood tree oil is essential oil and used in various health problems including stress, anxiety, hypertension, cramp
  • Sandalwood is widely used in religious activities
  • Sandalwood paste and oil are good for health 
  • Sandalwood is mostly used for treatment in Ayurveda sector

Sandalwood essential oil in airtight bottle

sandalwood oil

Sandalwood tree uses

  • Sandalwood trees are mostly used for making perfumes and deodorants 
  • Sandalwood tree oil is essential oil and used in various health problems including stress, anxiety, hypertension, cramp
  • Sandalwood is widely used in religious activities
  • Sandalwood paste and oil are good for health 
  • Sandalwood is mostly used for treatment in Ayurveda sector

How to plant sandalwood tree

In sandalwood tree cultivation seed sowing method is preferred by lots of farmer due to less costing in comparison of the plants. You can collect seeds from the 15 to 20 years old sandalwood tree and for seed collection August to March months are recommended.

If you have your own nursery then it is advised to dry the seeds in sunlight before semination on nursery beds. Sunken and raised beds are two types of seeds beds that should be available in nursery. (Pits size given in above paragraph)

A seedling will take 7 to 8 months to grow up 30 to 35 cm on nursery beds. When the plants will reach the height of 30-35 cm you can transplant them in the main field. Before planting the seedlings make sure there should be no water in the pits moreover you should dig the pits 2-3 days before planting seedlings. Expose the pits to the direct sunlight so that pests can be damaged and pits can dry out completely. Your plant will take at least 4 years to blow flowers however, they will reach the height of 5 to 6 feet in the first year only.

Fertilizer For Sandalwood Tree Cultivation 

Best fertilizer for sandalwood - In sandalwood farming you should choose best fertilizer for sandalwood tree therefore you can go with a mix of different fertilizer categories. You can choose (FYM) rotted farmyard manure as fertilizer, biofertilizer, organic (recommended) and little bit chemical fertilizer. Remember don't over fertilize your plant, controlled fertilizer will result in better sandalwood tree yield. 

Organic Fertilizer 

  • Cow dung 
  • Green leaves manure 
  • Vermicomposting 
  • Garden composting

Bio pesticides 

  • Cow urine, Cow dung
  • Dhatura 
  • Neem tree leaves, seeds kernel
  • Bamboo straw

Sandalwood Harvesting Time

Generally, sandalwood tree takes 30 years to grow mature but you can get good results from 15 year old white sandalwood tree as well. Before harvesting you have to inform forest department of your region so that it would not count in illegal sandalwood harvesting. After harvesting the heartwood of sandalwood trees are transferred in the mills where softwood removal process takes place.  

Sandalwoods are widely used in cosmetic industry hence sandalwood powder and sandalwood oil is made by heartwood of sandalwood trees. While making cosmetic products heartwood is first converted into powder then this powder is being soaked for couple of days later it used for making sandalwood oil and sandalwood cosmetic products. 

Scientific name of sandalwood

Botanical name of sandalwood - Santalum album L

Sandalwood family name – Santalaceae

Hosts plants for sandalwood in India 

Sandalwood best host plant - Sandalwood growing with host plants is a part of sandalwood cultivation so it is recommended to first search sandalwood host tree that can be planted along with sandalwood plant with a calculated distance. In north India you can select arhar plant for 2 years, pomegranate and for long period host you can select babool, neem tree whereas you should avoid orange and tangerine fruit tree as host because these fruits are sensitive and they may die early after their nitrogen consumption by sandalwood plant and if these trees will die early then it will damage your sandalwood plant as well because it is next to impossible for sandalwood plant to survive without host plants or host trees.

Yes, there is a bit more effort you have to put for sandalwood plantation but at the same time sandalwood tree is the most expensive tree in India and not only in India it is one of the most expensive tree in USA, Canada as well.

Why sandalwood needs host plants

Sandalwood growing with host plant - Sandalwood needs host plants because the roots of sandalwood do not take food (nitrogen, phosphorous, potash) from the ground themselves; rather they get nitrogen (npk) from the roots of other trees.  Therefore it is necessary to plant host trees along with chandan tree while planting host plants you should select nitrogen fixture plants such as neem, Agastya, Kari patta, kajorina plant etc. 

Before selecting host trees such as Khejadi tree, Gular tree, Karungali tree, Mustard tree, Hollong tree, Jarul tree, Datura tree, Apple tree, Ashoka tree or Peepal tree you should check the needed whether conditions and compatibility between host and sandalwood tree.  

Sandalwood host plants temporary

  • Henna plant (6months)
  • mimosa plant (6months)
  • Arhar daal (2 years)
  • Pomegranate

chandan host plant permanent 

While selecting permanent host for chandan or sandalwood plant you should choose a plant that lives more than sandalwood plant or at least 15 years.

Neem, babool, melia dubia, gooseberry (amla) , Jamun tree are some good hosts 

Sandalwood host plant list 

  • Tamarind
  • Jamun or jambolan
  • Malabar neem orchard
  • Neem tree
  • Gooseberry
  • Babool (Acacia, Englsih) 
  • Karipatta
  • kajorina tree
  • Agastya tree

Image credit goes to Pixabay

Crops need to be avoid in sandalwood farming

However, sandalwood farming modal provides you mix cropping chance in this farming modal you have to plant a host plant here you can take advantage of mix cropping and you should choose such plants that are nitrogen fixture but at the same time you should avoid various host trees or crops including grain, rice, sugarcane, orange, citrus, keenu fruit.

IWST Bangalore sandalwood 

IWST Bangalore training –  IWST stands for institute of Wood Science and Technology, it is a government institute where you can get sandalwood training.

Contact number of Jaswant Singh Dhillon 9988192676 – He lives in Rajasthan, Ganganagar and he is performing sandalwood cultivation practices from last 4 to 5 years. If you have any query you can call him

Sandalwood plant care 

The good thing about sandalwood plant is that it does not demand for much care like mahogany tree, you need to maintain your farm neat and clean. This plant doesn’t need much water so avoid overwatering chandan plant. Less water and clean farm results in fast growth of the plants. Instead of overwatering it will be better if you will not give water to chandan plant for weeks. Don’t ever start sandalwood cultivation in the place where water use to stand. Chandan tree price also depends on its care so do take a good care of chandan tree.

Sandalwood tree snake

Does sandalwood tree attracts snakes

Tree snake - Sandalwood tree snake wrapping is wrong this rumor was deliberately spread to scare the thieves of precious sandalwood wood. Rather, the reality is that the sandalwood tree produces fragrance after 8 years. When fragrance starts coming from chandan tree it means the tree is gaining weight

Sandalwood pest and diseases 

Sandalwood tree diseases - However, sandalwood plant diseases are rarely found therefore the tree needs less care still one need to take some precaution and the basic precaution is water management because access water can easily result in root rot or heartwood rot. If you are still thinking how to take care of sandalwood tree then here is a list of insects pests of sandalwood followed by diseases of sandalwood.

Insects pests sandalwood

  1. Nyctemera lacticinia or Cramer
  2. Purpuricenus sanguinolentus (Olivier)
  3. Trabala vishnou (Lefebvre)
  4. Toxoptera aurantil (Boyer de Fonscolombe)
  5. Tratodoes monticollis (Gray)
  6. Tajuria cippus
  7. Hyposidra Talacwalker
  8. Hotea nigrorufawlaker
  9. Eumeta crameri
  10. Defoliators 
  11. Calodia Kirkaldyi Nielson
  12. Cardiococcus bivalvata (Green)
  13. Eumeta Crameri (Westwood)

Sandal diseases 

  1. Pulvinaria psidii Mask
  2. Coccid 
  3. Black spot fungal 
  4. Phellinus noxius 
  5. Phytoplasma
  6. Spike disease in sandalwood  

Where to buy red sandalwood plant 

Where to buy sandalwood plant – In India only government can sell sandalwood plant however, farmer can purchase it online or from other private organization but before starting sandalwood cultivate you need to take permission from the government including forest, horticulture, department. While selling sandalwood you need to approach the government.

As per law in India only Indian government can sell sandalwood plant however, farmer can cultivate sandalwood. Hence, it is recommended to purchase chandan plants from the government organization rather than any private organization. IWST Bangalore is an government organization that belongs to science and wood department (click on IWST Bangalore its a jump link - shortcut to IWST paragraph).

Where to sell sandalwood plant 

Selling sandalwood – When your sandalwood tree is ready to harvest you have to inform forest department and forest department will start further process after checking your sandalwood farm. Remember you can’t sell it directly to any private organization it will be noted as crime. It is advised not to sell your sandalwood trees to any private organization you should inform forest department and sell it through proper channel made by the government.

Price of sandalwood tree in India

Sandalwood is one of the most expensive tree in the world. In 2021 the Price of sandalwood per kg in india is around Rs 15 k to 20 k accordingly. As per government rate the price is Rs 6000 to Rs 6500 per kg heartwood.

1 kg sandalwood price in India – Sandalwood price depends on the oil content of heartwood and weight of sapwood. One sandalwood tree weight after 15 years might be between 180-200 kg with 10, 16-24 kg heartwood. Sandalwood heartwood price is Rs 15,000 to 20,000 per kg and Rs 6000 to Rs 6500 per kg, government price. One good sandalwood tree can produce around 16 to 24 kg heartwood. Sandalwood tree weight after 10 years would be around 130-160 kg with 6 to 8 kg heartwood.

One sandalwood tree price – price of one sandalwood tree will depend upon the weight of heartwood (oil content) and sap wood of sandalwood tree and generally 10 to 15, 20 year old sandalwood tree contains 10 to 24 kg (heartwood) weight. Current sandalwood price per kg is between Rs 15,000 to 20,000 if a 10 year old sandalwood tree is of 10 kg (heartwood), let’s take minimum selling price Rs 14,000 x 10 kg = Rs 140,000 will be sandalwood yield per tree.

Sandalwood sapwood price – Rs 2000 to Rs 3000

Sandalwood tree name in India 

Sandalwood Tree Common Name in India

  • Chandan
  • Safed Chandan
  • Malayaja
  • Shrigandha 
  • Gandhasara 
  • Chandrakanta 
  • Sarpavasa
  • Aninditha 
  • Arishtha Phalam
  • Bhadhrashraya 
  • Thailaparna 
  • Sandalwood
  • Sandal 
  • Santalum Album

Sandalwood Tree Local Name

  • Chandan (Hindi)
  • Candana (Bengali)
  • Canana (Punjabi)
  • Candana (Gujarati)
  • Candana (Marathi) 
  • Gandhapu Chekka (Telugu)
  • Cantana (Tamil)
  • Raktacandanam (Malyalam)

Sandalwood Project Report

Sandalwood plantation project report

for sandalwood project report we need to calculate sandalwood planation profit and sandal wood cost then reduce the cost from the sandalwood profit thus you will get sandalwood yield per tree and sandalwood farming profit. 

Sandalwood tree cost per acre

1 acre =  400 sandalwood plant

1 sandalwood plant price Rs 30, Rs 50, Rs 70, Rs 100 (best quality)

If 1 sandalwood plant price is Rs 100

Sandalwood plant cost-  400 plants x Rs 100 = 40,000

Host plant cost –  400 plants x Rs 15 = Rs 6000

Total plant cost sandal wood + host = Rs 46,000

Note – host plant price depends on the selection of the host

Other cost including plants cost

Cost for 1st year

Plants cost






Land Preparation


Labour cost


Plant protection






Note - Add 25,000 harvesting charge in 10th year and irrigation charge will be 20,000 per year (1st year drip installation). After adding all cost the estimated cost will be 7 lakh 88 thousand for 10 years. 

Rs 7,88,000 is total cost for 10 years in sandalwood farming

Sandalwood farming profit per acre

Sandalwood farming income 

one sandalwood tree weight after 15 years might be between 180 to 200 kg with 10 to 24 kg heartwood, 65-70 kg sap wood.

We are calculating the figure for 10 years

If 1 tree is producing 10 kg heartwood after 10 years (sapwood not included)

You have planted 400 sandalwood plants and only 350 plants are in good condition after 10 years

1 tree = 10 kg heartwood

350 trees = 10 kg x 350 = 3500 kg heartwood

Thus 350 trees will produce 3500 kg heartwood

1 kg heartwood price = Rs 15000 to Rs 20,000 (Rs 6000 - 6500 government price)

Let’s take only Rs 6000 per kg

Then 3500 kg heartwood x Rs 6000 = 21000000

Total Profit = 2 crore 10 lakh

Net profit = Profit – Cost

Net profit = Rs 21000000 – Rs 788000 = Rs 20212000

Net Profit = Rs 20212000

Note – This figure may vary accordingly however, this is the most appropriate figure calculated by us but it is not the exact figure. Sapwood profit is not included in this calculation you can add that as well.

So, this is a brief calculation of sandalwood planation profit hope it will help you to understand the sandalwood farming income. 

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6 thoughts on “Sandalwood tree profit per acre | How to start sandalwood farming”

  1. A very informative article.

  2. very very useful information.
    thank you

  3. Gained a lot of Knowledge through the above article. I appreciate the effort made.
    Thank You!


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