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FREQUENTLY ASKED QUESTIONS


Sandalwood trees were the property of the government for years, but now the rule has changed. As per the Section 108 of the Karnataka Forest (Amendment) Act 2001, sandalwood tree grown in a specific land is the property of the owner of the land. Hence, anybody can grow sandalwood without any apprehensions.The government is also giving subsidy to grow sandalwood through State Medicinal Plants Authority and Horticulture Department.

http://timesofindia.indiatimes.com/city/bangalore/Demise-of-sandalwood/articleshow/12078008.cms
The Karnataka Forest Amendment Act of 2001- Sandalwood
http://www.asiantribune.com/news/2010/05/24/sunday-celebrity-sandalwood-scientist-anantha-p
http://www.thehindu.com/todays-paper/tp-national/tp-andhrapradesh/article2028212.ece
http://www.hindu.com/2008/08/08/stories/2008080856441100.htm
http://www.business-standard.com/india/news/corporate-sector-enters-sandalwood-plantation/431370/
http://www.ndtv.com/video/player/news/sandal-the-lost-treasure-of-india/32497
http://www.youtube.com/watch?v=OeaQCdDNN-s
Restrictions have been lifted since 2002, now Government is encouraging to grow sandalwood.
Yes, it is legal! And to confirm this we had written to the Forest Department of Andhra Pradesh under the RTI act ( Right to information act ) and find below the reply from them:

Sandalwood trees were the property of the government for years, but now the rule has changed. As per the Section 108 of the Karnataka Forest (Amendment) Act 2001, sandalwood tree grown in a specific land is the property of the owner of the land. Hence, anybody can grow sandalwood without any apprehensions. The government is also giving subsidy to grow sandalwood through State Medicinal Plants Authority and Horticulture Department.

So far we have only heard and known Sandalwood which was naturally grown in the forest atmosphere. Sandalwood is a semi parasite crop and depends on host plants for most of its nutrients, this is not readily available in the forest and therefore the growth takes time. Adding to this is the Govt policy which restricts living trees being cut down in Forests. Only dead Sandalwood trees in forests can be taken for production.

However, the scenario in organized cultivation is different. Host plants, water and fertilizer management are properly done to ease Sandalwood’s growth thus achieving optimum output within 10 to 12 years.

This is scientific management, returns will come in about 10 years itself. In forest plantation it will take more than 25 years. (Because sandalwood is a parasite it requires different host plants for its healthy growth, in forest which is not possible).

Sri balaji estates selling only plots. The customer who purchased plot sri balaji estates giving a gift is Sandal wood (Santalum album) plantation and Malabar neem ( melia Dubia) plantation. Organisation takes care plantaion, growing , Security ,maintenance and marketing. After 5 years 6 months Malabar neem ( melia Dubia) crop will come. 10 th year major income sandalwood plantation (Santalum album) crop will come. Profit sharing basis is 70:30 Customer gets 70% and sri balaji estates 30% for maintenance. Client reserves a right to sell his plot any time after registration.

Client’s role is to buy plot , give authority to Sri balaji estates for 10 years to do cultivation and maintenance of sandalwood trees and Malabar neem ( melia dubia) . After 5 years 6 months Malabar neem ( melia Dubia) crop will come .10th year crop returns 70:30 profit share basis on crop yield.Income on plantation is completely Tax free Returns.

Reducing the burden on client taking only the plot land value and Sri balaji estates does not takes the maintenance charge for 10 years. For further details on expenses of 10 years please contact marketing department.

Yes it can. Kindly find the following increase in price since 1990 till 2010. The prices mentioned below at per metric ton (mt). As per our project analysis we would be able to fetch upto 8 (mt) from each acre of cultivation.

  1. Indian Sandalwood has huge demand worldwide and the supply is currently way under the demand.
  2. 100 gms of branch wood (sandalwood) costs Rs 900 (source : Mysore sandal soap, Karnataka).
  3. 5 ml of sandalwood oil costs Rs 1350 (source : Mysore sandal soap, Karnataka).

You are welcome to try and do a cost analysis and verify the asking price of plots. We do not do much profit with the sale of the plots and this plot is registered in your name thus reducing the risk.

Immediately after the commitment of payment.
Yes, Title clearance confirmed by legal representatives.
Definitely our marketing manager will give you personally.
No, though customers being the owners it cannot be allowed for any construction in the plots. After 10 years customers can construct.

As the owner you are free to transfer/change the ownership however the new owner has to agree/follow the same agreement of cultivation as done originally. Any/all costs immerging out of the transfer has to be borne by the customer or the new party.

The site has been selected after thorough testing and is certified for its good quality and ability for sandal wood farmin.

An up to date copy of the layout and allocation would be available at the time of booking plots are done on first come first serve basis to maintain a fair and transparent ownership.

Optimum care has been taken to avoid conflicts and the customers are welcome for verbal discussions with project owners and other members collectively however in case of no solution any legal conflicts are limited to Khammam jurisdiction.

Management and maintenances is done by the Sri Balaji estates, khammam.

The project guest house has been planned to provide basic facilities for members, Accommodation for a short visit (with prior intimations).

The sandalwood harvest will bring the project to an end. Thereafter, the entire plots would be handed over to the clients. However customers who are interested can approach the project owners for another term of harvesting with terms and conditions decided at that point.

The offer price is fixed and we do not have any scope for negotiations.

No. The very purpose of we doing this project is to get the benefits from the final crop. Up to 10 years no construction.

Yes. After 4th year onwards insurance will be applicable. 200000 coverage per 1 sandal wood tree and company will bear the charges. If insurance claim done in claim also 70:30 .

This companies have already identified the huge potential in Sandalwood cultivation and to make this even more successful and risk free they have pooled in the highest talent & expertise. They have adopted the latest techniques which comes from years of tailoring and is based on a tested and proven technology. The costs incurred in adopting this technology & expertise can be used upto any extent of farming area. As per our experts’ analysis the cost of farming per acre gets even lesser with the increase in volume of farming. As a company we can independently do its farming however only upto a limited extent. To do an optimum utilization of this rich resource, to bring down the costs incurred and to increase the volume of farming we involve individuals as a team and share the outcome.

Many individuals, especially the working class employees wish to get into sandal wood farming. However, lack of time and expertise keeps them away from doing so. Sensing this as a profitable opportunity many sharp brains lure employees in the name of Mango/fruit bearing plantation, green house planning, second home etc etc. Post involving in such unfruitful investment option the investors form a negative prospective towards farming and add to the already prevailing disaster to our agro industry.

As a company they help these individuals determine the actual costs incurred for doing an successful farming and offers them an opportunity to join the organization's growing potential of Sandalwood farming thus also helping this cash crop called "wooden gold" retain its reputation before it gets tagged as in the case of Teak-wood. This combination of individuals and the company results as a win-win situation for all, including the tree.