If you are planning to start a new farming business but don’t know where to begin, then this article might just help you. The business plan that we are going to discuss today is of cultivating ‘White Sandalwood‘.
You might be amazed to know that 1 kg of sandalwood costs about 8 to 10 thousand rupees. And is sold for around 20 to 25 thousand rupees per KG outside India.
The investment required for starting this business is around 80 thousand to 1 lakh rupees for its cultivation. After which you can have a profit of at least 60 lakh rupees.
Its Uses & Legitimacy.
There is a lot of demand in foreign countries, both oil and wood produced from the white sandalwood tree are used to make medicines. Its extract is used as a flavor in food. Some Soap, cosmetics, and perfume brands also use the essence of white sandalwood oil.
People generally feel that sandalwood farming is illegal, whereas it is not. According to farming experts, the government has given legitimacy to cultivate white sandalwood.
How to Begin?
If you have a vacant land of one to two acres, then you can easily start your sandalwood farming on it. In this, you will have to spend up to one lakh rupees just to buy plants, make irrigation, fertilize and fence around the field.
The sandalwood plant is very expensive compared to other plants, but if you buy in bulk, you will get it for up to 200 rupees. From a full-grown Sandalwood tree, you can easily cultivate around 6 to 10 kgs of wood. If you plant sandalwood trees in one acre of land, then according to its market price you can make a profit of around 60 lakhs very easily.
So What’s The Catch?
Well even though the business is completely legit and can also end up earning you good profits, there is only one slight glitch in it. A sandalwood tree takes at least 10 to 12 years to fully grow.
This is when you opt for organic farming. If you do farming in the normal way, then you will have to wait for at least 20 to 25 years.
Cultivation of white sandalwood can be very beneficial for those who have plots purchased but left vacant in the urban areas. As long as the price of your land increases, you can make use of the time and earn from the business of sandalwood.