reduction in production of sandalwood during the past years. Production of
heartwood during 1930s through 1950s was around 4000 tonnes a year, which
decreased to a meagre 500 tonnes of wood a year or even less. It is estimated that
the Global demand for Indian sandalwood is around 5000–6000 tonnes/annum and
for oil it is around 100–120 tonnes/annum (Dhanya et al. 2010).
S. album is also found in Srilanka and South East Asia (Timor, Indonesia,
Malaysia, Cambodia, Vietnam, Burma, Thailnad and China), the Pacific (Papua
New Guinea, Fiji, Vanatu, New Celodonia and Hawaii) and to a certain extent in
areas northwest of Western Australia (Kanunurra) Expansion of Indian sandalwood
plantation resource has been occurring in northern Australia over the past few years
and is expected to make a significant market contribution to the otherwise declining
resource in its natural distribution (Stemmermann 1990). In fact, 90 % of the
world’s S. album output is produced in India. Indonesia dominates the balance of
world production and export.
5 Trade and Quality Issues of Sandalwood Oil
Sandalwood marks the beginning of trading in India. India was over the past
decades producing large quantities of sandalwood oil, meeting over 80 % of world
demand, but due to over exploitation and various other reasons the quantity of
production has come down drastically. Different sandalwood species are indigenous
to India, Indonesia, Sri Lanka, Bangladesh (S. album), and Australia (Santalum
spicatum and Santalum lanceolatum), as well as to several Pacific Islands such as
Hawaii (Santalum ellipticum), Fiji and Tonga (Santalum yasi), Papua New Guinea
(Santalum macgregorii), Vanuatu and New Caledonia (Santalum austrocaledonicum) and French Polynesia (Santalum insulare) (Butaud 2004). The essential
oil produced by sandalwood is obtained through steam distillation of chipped
heartwood. The oil is a pale yellow to yellow viscous liquid that is insoluble in
water. Sandalwood oil is used in perfumery, cosmetics and aromatherapy, pharmaceutical and food industries. Sandalwood is also used for woodcarving and as an
ingredient for incense. Although Sandalwood stocks in India continue to decline,
there is a possibility that recent policy changes in regulations especially in southern
parts of India will provide incentives for large-scale development of private plantation and may boost production levels of S. album from India in the mid to
long-term future (Ananthapadmanabha 2012).
Further, several countries namely China, Australia, Thailand, Costarica,
Cambodia and Srilanka are also venturing into S. album plantation because of its
fragrance characteristics and economic feasibility coupled with huge demand for
natural products worldwide (Subasinghe et al. 2013).
332
M. Srinivasa Rao et al.
heartwood during 1930s through 1950s was around 4000 tonnes a year, which
decreased to a meagre 500 tonnes of wood a year or even less. It is estimated that
the Global demand for Indian sandalwood is around 5000–6000 tonnes/annum and
for oil it is around 100–120 tonnes/annum (Dhanya et al. 2010).
S. album is also found in Srilanka and South East Asia (Timor, Indonesia,
Malaysia, Cambodia, Vietnam, Burma, Thailnad and China), the Pacific (Papua
New Guinea, Fiji, Vanatu, New Celodonia and Hawaii) and to a certain extent in
areas northwest of Western Australia (Kanunurra) Expansion of Indian sandalwood
plantation resource has been occurring in northern Australia over the past few years
and is expected to make a significant market contribution to the otherwise declining
resource in its natural distribution (Stemmermann 1990). In fact, 90 % of the
world’s S. album output is produced in India. Indonesia dominates the balance of
world production and export.
5 Trade and Quality Issues of Sandalwood Oil
Sandalwood marks the beginning of trading in India. India was over the past
decades producing large quantities of sandalwood oil, meeting over 80 % of world
demand, but due to over exploitation and various other reasons the quantity of
production has come down drastically. Different sandalwood species are indigenous
to India, Indonesia, Sri Lanka, Bangladesh (S. album), and Australia (Santalum
spicatum and Santalum lanceolatum), as well as to several Pacific Islands such as
Hawaii (Santalum ellipticum), Fiji and Tonga (Santalum yasi), Papua New Guinea
(Santalum macgregorii), Vanuatu and New Caledonia (Santalum austrocaledonicum) and French Polynesia (Santalum insulare) (Butaud 2004). The essential
oil produced by sandalwood is obtained through steam distillation of chipped
heartwood. The oil is a pale yellow to yellow viscous liquid that is insoluble in
water. Sandalwood oil is used in perfumery, cosmetics and aromatherapy, pharmaceutical and food industries. Sandalwood is also used for woodcarving and as an
ingredient for incense. Although Sandalwood stocks in India continue to decline,
there is a possibility that recent policy changes in regulations especially in southern
parts of India will provide incentives for large-scale development of private plantation and may boost production levels of S. album from India in the mid to
long-term future (Ananthapadmanabha 2012).
Further, several countries namely China, Australia, Thailand, Costarica,
Cambodia and Srilanka are also venturing into S. album plantation because of its
fragrance characteristics and economic feasibility coupled with huge demand for
natural products worldwide (Subasinghe et al. 2013).
332
M. Srinivasa Rao et al.