FEASIBILITY

Economic Feasibility & Cultivation of Sandalwood

 

No of sandal plants required per hectare 500 Nos.
No of pot hosts required per hectare 500 Nos.
No of Intermediate hosts plant required 500 Nos.
No of long term hosts required 500 Nos.
Cost of  production of sandalwood seedling(Rs.25/- each) 12500/-
Cost of production of seedling Primary host(Rs.3/- each) 1500/-
Cost of production of intermediate host (Rs.10/- each) 5000/-
Cost of production of long term host (Rs.25/-each) 1250/-
Planting cost including transportation soil working, Pit formation, soil working, watering etc. (Rs.10/- each) 20,000/-
Cost of drip irrigation 2,00,000/-
Recurring expenditure (for15 years) Security & vigilance (Rs.60,000/-per year) 9,00,000/-
Annual weeding & soil working for 8 years)(Rs.3000x8) 24,000/-
Irrigation (Rs.5000 x 8) 40,000/-
Manuring  (Rs.10000 x 8) 1,50,000/-
Miscellaneous management of Pest & diseases, Supervision etc for 15 years (15 yrs x 25000) 3,75,000/-
Total Expenditure (including Inflation 5% and interest at 12% on investment) 38,00,000/-
Land & other infrastructure 10,00,000/-
TOTAL EXPENDITURE (after reckoning the investment.) 27,50,500/-

SANDALWOOD HEARTWOOD EXPECTED YIELD AT THE AGE OF FIFTEEN YEARS AFTER TAKING 10% AS MORTALITIES, THEFTS ETC., (PER HECTARE).

No of sandalwood trees eligible for extraction 450 Nos
Quantity of heart wood expected per tree -20kgs (20kg x 450) 9000 kgs
Average cost of sandalwood heart wood. Even we assume sandal wood cost at the prevailing Government rate of Rs.3500/Kg which works out per hectare ) (Rs.4000 x 9000 kgs)  Rs.3,60,00,000
Average cost of Sapwood 30kg x 450)= 13500 kg(Rs.65 x 13500 kg ) Rs.8,77,500
Estimated profit from inter crops Rs.25,000 x 10 years Rs.2,50,000
Total Rs.3,71,27,500
   
Net Estimated Profit after reckoning expenditure 48,00,000/- per Hectare Rs.3,43,77,000
Net Estimated profit per acre Rs.1,37,50,800

For entering into MOU, for Cultivation of Sandalwood trees, For supply of grown up Sandalwood tress from Legal & Ethical sources For sandal saplings and clarifications, the growers may contact

Managing Director KS&DL, Bangalore – 55 Phone: 080-23378439
Karnataka Soaps & Detergents Ltd., Sandalwood Oil Division Manandawadi Road Mysore – 570 008 Phone: 0821-2485005, 2483551, 2483511
General Manager(R&D)I/c Karnataka Soaps & Detergents Ltd. P.B.No.5531, Bangalore – 55 Phone office:080 23471066 E-mail:rnd@mysoresandal.co.in
Karnataka Soaps & Detergents Ltd. Sandalwood Oil Division Vidhyanagar, Shimoga Phone: 08182-240113, 240420