Sandalwood Supply and Demand:
The scope for cultivation for sandalwood is very much encouraging, since there is wide gap between supply and demand. Known in commerce as Indian sandalwood, sandalwood has two primary uses: extraction of an essential oil (sandal oil), and as a source of wood for carving. Production is based almost entirely on wild populations. India and Indonesia are the two major producers and exporters although it is not known exactly how much is exported or is used within the country of origin because much of the trade remains unrecorded. The United States and France are the twolargest importers. India accounts for some 90% of sandal oil production in the world.
Sandalwood has a fairly wide distribution. Trees tend to grow very slowly, gradually developing a core of heartwood. The environment has an effect on the quality of the wood and oil. Much of the sandalwood is obtained from natural forests, small quantities are also obtained from plantations and trees growing in private fields. Harvested wood is cut into billets which are then transported to a central depot. The heartwood of the trunk, main branches and roots is used in essential oil distillation. The sapwood is used for carving. Sandalwood is much prized as a wood. In India, the sapwood is used for wood turning, particularly toy making.
Indian sources of Sandalwood will increasingly dominate global supplies and ultimately will set prices in the international markets. With world demand currently outstripping supply. This appetite for Indian Sandalwood is highlighted by the robust demand that exists for even the poorest grades of wood, including branch-wood down to 15 mm in diameter.