"The present market price of sandalwood is Rs 2500 to Rs 3000...

"The present market price of sandalwood is Rs 2500 to Rs 3000 per kg."

1 USD = 48.13 INR (Rs)

2500 (assume for lower quality plantation) / 48.13 = US$51.94/kg

US$51.94/kg = US$51,940/tonne

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Forest Dept to promote sandalwood cultivation
Friday, July 17, 2009

Chitradurga (PTI): Karnataka forest department has decided to promote sandalwood cultivation in the district by distributing around 50,000 seedlings this year.

The department has taken this decision following a recent amendment in Karnataka Forest Rules 1969, under which some of the norms relating to sandalwood cultivation have been relaxed, District Forest Officer Srinivasulu told PTI on Friday.

"Earlier, cultivators had to sell sandalwood only to the forest department. Hence people were not coming forward to cultivate this precious wood", he said.

With the amendment, the government has now allowed sale of sandalwood directly to semi-government agencies such as Karnataka State Handicraft Development Corporation (KSHDC) and Karnataka Soaps and Detergents Limited (KSDL), he said.

The two agencies buy the wood from cultivators by paying an advance amount of 10 per cent of the approximate cost and the remaining would be paid within a maximum period of six months, he said.

To avoid smuggling and illegal trade, the department mediates in the selling process and keeps a record of wood sold.

Sandalwood in the only tree sold on the basis of weight and not size. The present market price of sandalwood is Rs 2500 to Rs 3000 per kg. About 10 varieties of sandalwood were cultivated in the state, Mr. Srinivasalu said.

Mr. Srinivasalu said sandalwood was largely found in Jogimatti forest range in Chitradurga, Devaragudda forest range in Molakalmuru and Neerathalli forest range in Holalkere taluk of the district.

"We want farmers to cultivate this wood which does not require heavy investment. This could will be cultivated along with arecanut or coconut. The government is also offering a 75 per cent subsidy on cultivation", he said, adding the forest department had already distributed 15000 seedling to various cultivators in the district.

http://www.hindu.com/thehindu/holnus/004200907171451.htm