Winning Bizness Desk

Mumbai. Many people know sandalwood only as an aromatic wood or about its Ayurvedic importance. But very few people know that it earns a lot of money. India's sandalwood is famous all over the world. Its increasing demand is making it more expensive every day. It has become challenging for the sandalwood farmers to meet the demand. That's why now the government is encouraging people to grow sandalwood trees. Sandalwood is used in expensive perfumes and rituals. Sandalwood is also used in Ayurvedic medicines. Earlier it was cultivated only in South India, but now seeing its profits in North also, the trend of farmers has increased towards it. You can also become a millionaire by cultivating sandalwood. However, for this one has to have some patience.

It's a long term investment

Sandalwood farming can be seen as a long term investment. The investment in this is very less. The biggest investment in this is time. If you plant it keeping in mind the long term, then it is certain that you can become a millionaire. The bigger the area where the sandalwood tree is planted, the more will be the profit. Here we talk about profit and cost according to 1 hectare. A sandalwood plant of 2-2.5 years will be available for Rs.150-200. You can plant 600 trees in 1 hectare. The tree will be fit for timber in 10-15 years. Each tree of this is sold for up to 2-5 lakh rupees. If you go by assuming Rs 2 lakh, then you can get Rs 12 crore from 600 trees. If the tree is sold for Rs 5 lakh, then the earning will be Rs 30 crore. No mutual fund or FD can give this much return.

Returns are available on 12 to 15 years

If you grow sandalwood organically, you will reap benefits in 10-15 years. On the other hand, if sandalwood trees are grown traditionally, it may take 20-25 years. There are 2 types of sandalwood, red and white/yellow. Red sandalwood is grown in South India and white sandalwood in North India. It does not require much moisture. Along with the sandalwood tree, any other tree can also be planted at a distance of 3-4 feet. This is because sandalwood draws its nutrition from other trees only. There should be no pollution around the sandalwood tree, otherwise its growth stops.

Once upon a time, it was banned

At one time the cultivation of sandalwood was banned. Now the government allows this and also provides a grant of 28-30 thousand rupees along with it. However, the farmers have to sell this sandalwood back to the government. Many times, for this reason, farmers withdraw from growing it. You cannot cut or use the sandalwood tree by yourself. For this, information has to be given to the Forest Department. The officials of the department come and buy sandalwood trees from you and cut them down and take them away.