Project report for Sandalwood Oil

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Sandalwood oil is an essential oil obtained by processing chips and billets of sandalwood trees through steam distillation. It is mainly used in the cosmetic and personal care industry to produce commodities such as soaps, shampoos, and lotions. Sandalwood oil has been traditionally used as an antiseptic and astringent to treat headache, stomach-ache, and urinary disorders. Nowadays, it is most commonly used in aromatherapy to improve psychological well-being. Indian Sandalwood may be considered as one of the world's most valuable commercial timber and is currently valued globally for its heartwood and oil. Since liberalization of rules regarding sandalwood growing and there has been tremendous interest among farmers and stakeholders across India in farming this tree.  The hemi-parasitic nature of the tree, its adaptability to grow in semiarid tracts and potential to grow in combination with horticultural species as secondary hosts makes it a potent agroforestry species. High demand and remunerative prices of heartwood have motivated farmers or stakeholders to take up sandalwood farming especially in non-traditional areas in many states across India like Gujarat, Rajasthan, Andhra Pradesh, Madhya Pradesh, and Maharashtra. The scope of cultivation in current farming systems including economics of cultivation have been critically analysed and presented. The  current problems  and future  prospects for  increased livelihood  opportunities and  enhancing farm  income  levels also  discussed along  with suggestion  for  promoting sandalwood farming practices across India.

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Market potential & Strategy

Growing beauty consciousness has fuelled the demand for sandalwood oil. Sandalwood oil plays an important role in perfumeries as it has an exotic woody-floral scent which tempts consumers. Apart from perfumeries, sandalwood oil is also used as facial cleansing oil, anti-wrinkle ingredient, and as a moisturizing agent in the cosmetic and personal care industries. Sandalwood oil has also found usage in personal care products such as bathing soaps, shampoos, body lotions, etc. over the years. A rise in the number of working populations in the developing economies has led to increased stress levels, which inclines consumers toward spas for relaxation. This ultimately has a positive impact on the sandalwood oil market since it is a widely used essential oil for aromatherapy. Increase in demand for natural perfume over synthetic perfume is a major driver for the sandalwood oil market. With rise in disposable income of the population, there is an escalation in the demand for personal care products such as aromatic soaps, shampoos, and lotions, which drives the growth of the market. However, high price of sandalwood oil is expected to hinder the growth of the sandalwood oil market. Increasing application of sandalwood oil is driving the production and consumption of sandalwood oil across the world. Along with cosmetics, sandalwood oil has growing demand for commercial consumer products such as incense sticks, room fresheners, aroma therapeutic blending etc. due to increasing demand for the natural aromatic products among the consumers. The multi-utility for sandalwood oil is anticipated to grow positively in the forecast period.

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