Key Highlights
- India dominates global sandalwood output, especially from Karnataka, Tamil Nadu and Kerala.
- Australia and Indonesia have rapidly scaled up plantations, becoming major exporters of premium sandalwood oil.
- The trade not only fuels economies but also sustains cultural rituals and traditional medicine worldwide.
Detailed Insights
India
India supplies roughly 70% of the world’s sandalwood. Karnataka’s Mysore region is renowned for its dense, high‑oil trees, which are exported for perfumes, soaps, Ayurveda and religious rites.
Australia
Western Australia and the Northern Territory cultivate Santalum album on expansive plantations, leveraging advanced agronomy to meet the demand of cosmetics and pharmaceuticals.
Indonesia
East Nusa Tenggara’s Timor sandalwood is prized for its aromatic resin, used in incense, carvings and essential oils, with government‑backed plantations expanding supply.
Sri Lanka
Historic use in temple rituals and perfumery keeps Sri Lankan sandalwood in high demand, with strict forestry policies protecting its growth.
Nepal
Terai forests yield modest sandalwood primarily for local incense and oil, while entry into international markets is growing gradually.
Bangladesh
Limited but emerging production in hilly forests sees sandalwood used in cosmetics and incense, with governmental incentives promoting commercial cultivation.
China
Southern Chinese plantations are developing to reduce import reliance, supplying sandalwood for medicine, incense and cosmetics as global demand rises.
Fiji
Pacific sandalwood (Santalum yasi) is harvested primarily for oil extraction and incense, positioning Fiji as a key supplier in the Pacific region.
Papua New Guinea
Both natural forests and plantations produce sandalwood oil exported for perfumes, incense and aromatherapy, cementing its role in the global trade.
Thailand
Thai sandalwood serves religious, cultural and commercial purposes; plantations are expanding to meet demand for fragrances and incense.
Key Concepts
- Sandalwood (Santalum spp.) – aromatic hardwood tree valued for its fragrant resin and oil.
- Sandalwood oil – extractions of the essential oil used in perfumery, cosmetics and medicine.
- Terai region – low‑land plains in Nepal where sandalwood cultivation is concentrated.
- Incense – aromatic substance burned for rituals, relaxation and fragrance.
- Ayurveda – traditional Indian system of medicine employing sandalwood for therapeutic purposes.