The Khadi and Village Industries Commission (KVIC), in a first of its kind initiative has begun exploring the untapped but highly profitable venture of sandalwood and bamboo tree plantation for monetization of its assets.
KVIC Initiative
Seeking to encourage commercial plantation of sandalwood and bamboo, the KVIC has begun the drive with a plantation of 500 saplings each of sandalwood and bamboo at its Nashik training center spread over 262 acres of land. KVIC has procured sandalwood saplings from Fragrance and Flavour Development Centre (FFDC) Kannauj, a unit of the Ministry of MSME, in Uttar Pradesh and Bamboo saplings from Assam.
The plantation of the Sandalwood has also been planned with an eye on creating an asset for the KVIC as it is estimated to fetch between Rs 50 crore to Rs 60 crore in the next 10 to 15 years. A sandalwood tree matures in 10 to 15 years and as per the current rate, sells at Rs 10 lakh to Rs 12 lakh each. Likewise, a special variety of bamboo, Bambusa Tulda, used for making Agarbatti sticks, brought from Assam has been planted in Maharashtra with an aim to support the local Agarbatti industry and to create regular income for the training center.
Plantation of sandalwood and bamboo trees on vacant land aims at monetization of the property. At the same time, it will serve the dual purpose of meeting the huge global demand of Sandalwood while Bamboo plantation will support the local Agarbatti manufacturers in the light of recent decision taken by the Central government to make India Atma Nirbhar in Agarbatti making.
Plantation of sandalwood trees has high potential in the export market as well. Sandalwood and its oil have high demand in countries like China, Japan, Taiwan, Australia and the USA. However, there is a short-supply of sandalwood and hence a great opportunity for India to increase sandalwood plantation and occupy the position of a global leader in sandalwood production.
