“Sandalwood is closely linked to India’s social and cultural heritage. Our government will partner with State Governments to promote focused cultivation and post-harvest processing to restore the glory of the Indian Sandalwood ecosystem,” Sitharaman said.
The Budget 2026-27 has made a provision of Rs 350 crore for supporting high value agriculture crops, which also includes cashew, cocoa and agar, besides sandalwood among others.
Hurdles in process
K Amaranarayana, President, All India Sandalwood and Tree Culture Association, welcomed the steps announced in the Budget to promote cultivation of sandalwood. “We thank the Finance Minister for taking initiative to promote sandalwood across the country. It is the pride product of India and is in great demand across the world. This will definitely give a fillip to the sandalwood cultivation across the country,” Amaranarayana said.
However, the farm grown sandalwood should be freed from the purview of the forest department, said Amaranarayana, who is also the president of Karnataka Sandalwood & Farm Forestry Growers Association.
Even the Sandalwood Development Committee (SDC) has recommended that Ministry of Forest and Environment amend the Indian Forest Act 1927 to exempt the farm grown sandalwood from the list of forest produce and timber, he said. India, once a major producer of sandalwood and its oil, emerged as an importer due to the non-availability of wood.
Sandalwood is grown in about 18000 hectares across the country, Amarnarayana said. Karnataka is the major producer with an area of 10,775 hectares, followed by Telangana with some 5104 ha. Other major producing states include Tamil Nadu 590 ha, Madhya Pradesh 410 ha, Andhra 310 ha, Maharashtra 110 ha and Kerala with 68 ha. Gujarat with 80 ha, Assam 40 ha, Himachal Pradesh with 31 ha and Punjab with some 4 ha also produce sandalwood, he added.
Published on February 1, 2026
