If you are farmer or investor and planning for sandalwood tree then you require proper climate, soil, land, plant selection, fertilizers, and irrigation. Before start cultivation, you must make proper project planning, calculate the expenses and profit, and note hoe much investment required for this cultivation.

Sandalwood …Santalum album – Shiri Gandha – Chandana – Aninditha - Arishta Phalam - Bhadhrashraya – Sarpavasa – Chandrakanta – Gandhasara – Thailaparna - Malayaja
Seedlings will mature and become ready for harvest in 15-20 years
Planting your own Sandalwood Tree
The sandalwood is a root parasite so you have to provide other plants for it to grow along with, especially by the time it is 8' high, Alternatively, when you plant the sandalwood seed, also throw in some toor dal or butterfly seeds.
Plant the sandalwood seed ¾' to 1' below the soil and water it lightly everyday. If you don't have access to a strip of soil, you can plant the seed in a soil bed or a pot, or recycle a milk-bag by punching holes in it, adding soil and turning it into a tiny planter. You can move it to a larger bag or a larger pot as required, and gift the sapling to someone else if you run out of space.
Mix red earth, farmyard manure (cattle manure) and sand in a ratio of 2:1:1 i.e 2 parts of red earth, 1 part of manure and 1 part of sand. Silt also provides very good nourishment to plants. The seeds will start sprouting only in 4 to 8 weeks so don't stop watering if you don't see results - and don't over water, because that certainly won't hasten the process! The soil should always be moist, never water logged, so after it has sprouted, water it only on alternate days.
Eventually, if you have no place to transfer the plant to, you can keep the sandalwood tree in a large container (cement chilla /pot/etc) in your balcony or terrace, strip compound.
When your saplings are about one month old, transplanting them to a larger area will give them a much higher chance to survive and thrive.
Clear an area for planting and dig a pit about 30cm3 in size. Plant the sandalwood seedlings along with the host seedlings - keep a distance of 2.5 to 4m between two sandalwood plants. Usually, sandalwood is transplanted in the months between May and October.
To prevent contamination of local varieties, plant these seeds only in urban areas, not in protected forest areas.

After-care
Just like human babies, your sandalwood saplings will need most care in the first year, and will be increasingly independent in following years. You will need to weed around the plants and work the soil for the first year, and, if necessary, in the second year too. In case the host plants outgrow the sandalwood seedlings, tip them a little to provide enough light to the seedlings. If any climbers surround your seedling, cut and remove them.
Ideal Soil
Sandal trees grow mainly on red ferregenuous loam, overlying metamorphic rocks, chiefly gneiss. They can tolerate shallow, rocky ground and stony or gravelly soils, voiding saline or calcareous soils, and are not exacting about the depth of the soil.
Rich and moist soils such as well-drained alluvial soils, do not support sandalwood well; the heartwood in such trees will be deficient in oil. Trees grown on poor soils yield better oil, though they cannot withstand water-logging.
Parasitism
The roots of sandalwood saplings attach themselves to the root of the host plant with the help of haustoria. There are also instances of sandal thriving off other sandal trees too.
Sandalwood grows well with hosts such as Acacia, Albizzia, Bombusa, Cassia, Erythrina, Erythroxylon, Gossypium, Pongamia, Semecarpus, Strychnos, Tectona, Thespesia, Vitex and Zocypus in natural forest Spike disease has been reported to be transmitted form hosts, such as Lantana, Acanthaclous Ocimum Dedroclamus, Dodonea, Vinca and Eucalyptus.
Climate
The tree flourishes best between altitudes of 600 and 1050 m, though it may go up to 1350 m and descend as low as 360m. The important sandal tracts lie in places where rainfall varies from 60-160cm.
In general, the sandal tree flourishes in regions where the climate is cool with moderate rainfall, plentiful sunshine and long periods of dry weather. The ideal temperature for its growth is between 12° and 30°C.
The crop can be raised through seeds by raising nursery in sunken and raised beds are used to raise seedlings. Both of them perform equally well under different climatic conditions.
Seed beds are prepared with sand and red earth in the ratio 3:1.
Around 2.5 Kg. seed is spread uniformly over the bed, covered with straw, which should be removed when the leaves start appearing on the seedlings.
When seedling have reached 4 to 6 leaf stage they are transplanted to poly bags along with a seed of “Red gram” (Cajanus cajan), the primary host for better growth of sandal. Seedlings are carefully removed from beds with all roots immediately after transplantation.
Watering is to be done once a day, but excess moisture is to be avoided.
Host plants are pruned frequently, so that they do not over grow sandal and hamper its growth.
Polybags should contain soil mixture of ratio 2:1:1 (Sand: Red earth: Farmyard manure). It as been found that poly bags of 30 X 14 cm size are the best.
Plantable seedlings of about 30cm height can be raised in 6-8 months’ time. A well-branched seedling with a brown stem is ideal for planting in the field.
Planting 6-8 months ready plants directly will reduce the total crop duration, minimizes the risk of raising nursery and assured quality planting material are added advantages.
Digging pit size of 2’X2’X2’ filled with 1:2 ratio of red earth and farmyard manure watering for settling down the mixture.
Placing the healthy seedling of sandal in the center by digging the small pit ensured that all the root systems are placed properly in the pit so that the tender roots will establish quickly.
Planting the host plant in the pit 6” apart from the sandal plant.
SPACING & PLANT POPULATION:
Pits should be dugged with a spacing of 12’X12’ = 303 plants per one Acre.
This is optimum for better plant population and yield. Plant population of at least 300 plants per Acre to be maintained.
8.0 tones of farmyard manure will be sufficient per one acre of sandal crop per year, chemical fertilizers required initially depending on soil fertility status.
Regular weeding and inter cultivation to be done to prevent soil moisture and nutrient loss. Inter crops are preferred for additional income and best land utilization and soil management.
It is also advisable to go for a inter crop which ensures inter cultivation and additional income to the farmer. Intercrops like Coleus forskolii, Banaba leaves and other short duration crops preferred. Short duration crops have shallow root system, that will not going to compete for water and nutrients with main crop.
Sandal is a rain fed crop. Young plants require watering in summer months at 15-20 days interval till they are fully established.
Plants should be protected from physical damage, controlling white ants which is major problem in red soils, spray of 2% chloropyriphos on white ant attacked portion of shoot and near around the tree trunk will check the white ant effect.
Sandal tree yields two kinds of wood sapwood and heart wood and yield from inter crops.
Red Sandal exports has been Ban from Indian Government.
Forest Department is not providing permission for Red Sandal Tree cutting.
As there is no clarity we suggest to plant White Sandal instead of Red Sandal.
Export & Import relations between India-Pakistan-China are not so great & we cannot expect the healthy relation in coming years.China is the apex buyer for Red Sandal.
1) What kind of land is required for red sandal plantation?
Rich red soil is required.
2) In one acre of land totally how many plants can be grown?
It depends up on the spacing. Up to 400 plants can be grown. But sandal needs a host plant in between, and so spacing will alter.
3) What is the distance required between plants? Please provide dimensions from plant to plant.
There should be a distance of 12 X 12 between plants.
4) How frequent and what quantity of water is required for each plant?
Water 10 liter/plant/two days has to be provided.
5) What is the best process for providing water?
Drip irrigation is the best process.
Red Sandal export has been banned by the Indian Government - No, we have to give to MSIL, and they provide buy back agreement.
'Forest Department is not providing permission for Red Sandal Tree cutting' - It is incorrect statement.
For sales of sandalwood - Sandal wood can’t be sold to anyone, expect the license holder and can be given to MSIL for which they provide us the buyback agreement.
In February I planted around 12 acres of red sandal. And in few weeks, I am planning to plant another 5 acres. Based on my experience(good and bad) here are the answers.
1) Other than black soil and salty soil, any soil is good for Red Sandal wood plantation.
2) The optimum spacing is 10'X10' for the middle rows. I have left around 13' in the borders so that the Tractor can move in properly. With this spacing you can plant around 400 plants per acre.
3)I have answered in the 2). I repeat you can plant around 400 plants per acre depending on its shape.
4)Red sandal is very rigid. It can sustain the dry circumstances. It can sustain in hot summer, if you give 5-6 litres water every 2 weeks. In my case, we had sufficient water. So we have given around 16 litres of water every third day.
5. The best way to provide water is through drip irrigation. It is labor intesive, if you plant to give water with canals.
Other points to remember:
1. Please don't spend too much money on making pits. Plough the soil properly and use shovels to plant the trees.
2. Don't spend money on manor. It is lot of expense and attract all kinds of weed and disease. For the beginning, don't use manor. (I know many people will dispute this point)
3. Don't spend money on urea/dap etc..... But while planting use some forate granules to avoid the white ants and other insects.
4. The red sandal is NOT root parasite. So host plants are NOT required.
Please don't spend too much money in the begining. Weed is the main problem and you have to fight with weeding for the first 2-3 years.
How to Grow a Sandalwood Tree
Select a planting site with a blend of loam and sand that drains well. Dig a hole about a foot deep, and fill it with water. If the liquid disappears underground within 24 hours, the area offers adequate drainage. Raise the sandalwood trees in a weed-free environment their first two years to allow them to fully develop without having to compete for nutrients.
Cultivation methods
In 6 - 10 Months seedlings become ready for transplantation. One year Old seedling ready for planting are available in our concern. As estimated 500, trees can be planted in a hectare and after 25 years minimum 500kg of heartwoood/tree can be obtained. thus one can expect 25000kg of wood from one hectare plantation. At an average market rate of Rs.75/kg an income of Rs 177.5 lakhs is expected. The seeds are available with Maria Redsandal Plantation Pudukkottai. Since it is wild plant and the tree takes at least 30-40 years to come to the stage of cutting.
Don't confuse red sandalwood (Pterocarpus santalinus) with white sandalwood (Santalum album)