Market Potential
Sandalwood is used extensively in many nations across the world. Excessive deforestation and environmental protection have resulted in a significant reduction in the global supply. Once upon a time, India was one of the world’s largest Sandalwood suppliers has now banned all exports. As a result of the lack of Sandalwood suppliers, the international price has surged.
The International market was huge. Therefore, now is a fantastic time to invest in sandalwood plantations. Sandalwood has a lot of advantages for investors. After 15 years of harvesting, an investment in Sandalwood yields a good return. Every year, the Sandalwood tree’s heartwood increases by 1 kg. It’s the world’s only wood, sold by weight.
MARKET OPPORTUNITY
- High demand already for Indian Sandalwood.
- India may become a net importer in 2040 (Thomson, 2021).
- Price elasticity for sandalwood products is high.
- Demand will increase substantially if the price of Sandalwood falls.
- Higher sandalwood production costs in Australia.
- Promoted by Karnataka Government: legalized commercial farming.
- Sapling's subsidy, maintenance incentives, sharing labor costs, government buyers.