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Mytan Farms

Sandalwood Farming Rules in Karnataka: Legal Requirements Explained

“Can I really grow sandalwood on my own land? Won’t the forest department take it away?”

We get this question at Mytan Farms more than almost any other. And if you are considering sandalwood farmland near Bangalore, it is the right question to ask first. For over 200 years, sandalwood in Karnataka was treated as government property, even when it grew in your backyard. Many families still remember a time when a sandalwood tree on your land was more of a liability than an asset.

That has changed. But the rules are still layered, and a lot of what you read online is either outdated or oversimplified. Since we develop and manage sandalwood farmland near Bangalore in the Lepakshi–Bagepalli belt, we deal with these regulations in practice, not just on paper. This article explains the current legal position in plain language, so you know exactly what you can and cannot do.

Note: Laws and rules change. This article reflects the position as we understand it in late 2026. Always confirm with the Karnataka Forest Department or a lawyer before you act on anything here.

A Short History: Why Sandalwood Was Called the “Royal Tree”

In 1792, Tipu Sultan declared sandalwood a “Royal Tree” in the Mysore kingdom. From that point, every sandalwood tree, whether in a forest or on private land, belonged to the state. Landowners could not cut, sell or even prune a sandalwood tree. They were only responsible for protecting it. If the tree was stolen from their land, they could be held answerable.

This rule continued after independence under the Karnataka Forest Act, 1963. The result was predictable. Nobody wanted sandalwood on their land. Farmers quietly uprooted saplings. Natural sandalwood cover in Karnataka collapsed, and smuggling flourished because there was no legal private supply.

The 2001 Amendment: The Turning Point

In 2001, Karnataka amended the Forest Act (the change came into force in 2002). This is the single most important date for anyone thinking about sandalwood farming in the state.

The amendment gave the owner of the land ownership of the sandalwood trees growing on it. A private person could now legally plant, grow and own sandalwood. For the first time since 1792, sandalwood became a crop rather than a crown asset.

What the amendment did not do was free up the trade. Even after 2001, you could grow sandalwood but you could only sell the harvested wood to the state government. That meant the Karnataka Forest Department, and later two state-backed agencies: Karnataka Soaps and Detergents Limited (KSDL, the makers of Mysore Sandal Soap) and the Karnataka State Handicrafts Development Corporation (KSHDC). Direct selling to these two agencies was permitted from 2008.

The 2022 Relaxation: Selling in the Open Market

In November 2022, the Karnataka Cabinet approved a major relaxation. The Karnataka Forest (Amendment) Rules now allow private growers to sell their sandalwood to buyers other than the state government and its undertakings. In plain words: you are no longer forced to sell only to KSDL at the price they set.

Along with this, the government announced that all farmers would be permitted to grow sandalwood on private land, that they would receive guidance and protection, and that trees would be tagged with chips so they can be tracked, which helps reduce theft and makes legal harvests easier to prove.

This is why serious investors have started looking at sandalwood farmland near Bangalore as a long-term asset. The legal path from planting to selling is now clearer than it has ever been.

What You Can Legally Do Today (Step by Step)

Here is how the legal process works for a private grower in Karnataka, as it stands now.

1. Planting. You do not need a licence to plant sandalwood on your own agricultural land. You can buy saplings from the Karnataka Forest Department nurseries, the Institute of Wood Science and Technology (IWST) in Bengaluru, or reputed private nurseries. The state has even run schemes like Krishi Aranya Yojana to distribute subsidised seedlings.

2. Intimation and registration. Although planting is free, it is strongly advisable to inform the local Range Forest Officer in writing and keep a record of how many trees you planted, where, and when. Some districts maintain a register of private sandalwood plantations. This paper trail becomes very important 15 years later when you want to harvest. A tree with no planting record invites questions about whether it was legally grown.

3. Growing and protecting. The landowner is responsible for protecting the trees. Sandalwood theft is a real problem in Karnataka. The law treats illegal felling, possession and transport of sandalwood as a serious offence, so your protection measures (fencing, security, tagging) also protect you from being wrongly accused.

4. Harvest permission. You cannot simply cut a mature sandalwood tree. You apply to the Forest Department for permission to harvest. Officials visit the farm, verify the trees against your records, and assess the wood. This step confirms that the wood is from a legally grown private plantation and not from a forest.

5. Transit permit. Sandalwood cannot be moved on the road without a transit permit from the Forest Department. The permit records the quantity, source and destination. Moving sandalwood without it, even your own, is an offence.

6. Sale. After the 2022 rules, you can sell to KSDL, KSHDC, or other legally registered buyers such as licensed oil extractors, handicraft units and exporters. KSDL still buys in large volumes and is a reliable buyer, but you are no longer locked in.

We have written a more detailed walkthrough of this in our guide on sandalwood farming legal rules which also covers how other states differ.

Common Legal Mistakes That Cost Growers Money

In our experience, these are the errors we see most often.

  • No planting records. Growers plant 500 trees, keep no receipts or written intimation, and face a difficult verification at harvest time.
  • Cutting even a dead or fallen tree without permission. A fallen sandalwood tree still needs Forest Department clearance before it is moved or sold.
  • Buying “sandalwood farm plots” on land that is not agricultural. If the land is not legally agricultural or has title issues, the plantation on it inherits those problems. Our legal guide to buying farmland explains what documents to check before you buy.
  • Confusing Indian sandalwood with red sandalwood. These are completely different trees with different laws. Red sanders (Pterocarpus santalinus) is listed under CITES and has much stricter export controls. This article is about Indian sandalwood (Santalum album).
  • Expecting the harvest at year 8. Heartwood and oil content build mainly after year 12–15. Harvesting too early gives poor-grade wood and may not even get approval.

Why the Rules Matter for Your Returns

Legal clarity directly affects what a sandalwood tree is worth to you. A tree with a clean planting record, a verified harvest and a transit permit sells at full market value. High-grade Indian sandalwood heartwood has been reported to fetch up to ₹70–80 lakh per tonne. A tree with a murky history sells for far less, or cannot be sold at all. We have covered this trade-off in more depth in our piece on sandalwood regulations and returns.

Karnataka produces close to 65% of India’s sandalwood, so the state has every reason to keep improving the system for growers. There is also an active push, including from Bengaluru Rural MP Dr. C. N. Manjunath in December 2025, for a National Sandalwood Board on the lines of the Coffee Board to simplify permissions and marketing. If that happens, the process will get easier still.

For a realistic picture of what a plantation can earn over 15 years, see our note on returns from sandalwood farmland, which walks through tree count, survival rate and heartwood yield.

What We Handle for Owners at Mytan Farms

Managing sandalwood legally for 15 years is a lot of work for an individual. This is where the managed farmland model helps. At our sandalwood farmland near Bangalore, the land is registered in the owner’s name with a clean sale deed. On the owner’s behalf, our team handles:

  • Sourcing certified saplings and host plants (sandalwood is a semi-parasite and needs host trees to grow well)
  • Written intimation to the Forest Department and maintaining the plantation register
  • Fencing, security and tree tagging
  • Scientific care: irrigation, pruning, pest control, host management
  • Coordinating harvest permission, verification, transit permits and sale at maturity

Our founder, Harish Babu M L, spent over 22 years as a research scientist and project head in pharmaceutical multinationals before building Mytan Farms. That background is why we insist on documentation at every step. In 2022, Mytan Farms received the National Award for Business Excellence as an emerging agriculture MSME, presented by the Governor of Karnataka. We put that on record not to boast but because, with a 15-year crop, you need to know the developer will still be around.

If you are planting on your own, our guide on how to grow sandalwood trees covers soil, spacing and host plants in detail.

The Bottom Line

Sandalwood farming in Karnataka is legal, and the rules have moved steadily in the grower’s favour: ownership in 2001, direct sale to state agencies in 2008, and open-market sale from 2022. What remains is a permission-and-permit system around harvest and transport, which exists to separate legal plantation wood from smuggled forest wood.

Follow the paper trail from day one, protect the trees, and plan for a 15-year horizon. Do that, and sandalwood farmland near Bangalore can be one of the most rewarding long-term assets a family can hold. Skip the paperwork, and even a perfect plantation can become a problem.

If you want to see a working sandalwood plantation and go through the actual documents, the Mytan Farms team is happy to take you to our farms near Lepakshi and answer every question.

Frequently Asked Questions

1. Is it legal for a private person to grow sandalwood in Karnataka?

Yes. Since the 2001 amendment to the Karnataka Forest Act, the owner of the land owns the sandalwood trees growing on it. You can plant and grow sandalwood on your own agricultural land without a special licence. Harvesting and transporting the wood still require Forest Department permission.

2. Can I sell my sandalwood to anyone, or only to the government?

After the November 2022 amendment to the Karnataka Forest Rules, growers can sell to buyers other than the state government and its undertakings. KSDL and KSHDC remain major buyers, but you can also sell to other legally registered buyers. Every sale still needs a transit permit.

3. Do I need to register my sandalwood plantation?

Planting does not require a licence, but you should inform the local Range Forest Officer in writing and keep records of saplings purchased, the number planted and the date. This record is what the Forest Department verifies when you apply for harvest permission years later.

4. How long does sandalwood take to mature, and can I harvest earlier?

Commercially useful heartwood develops mainly after 12–15 years, and oil content keeps improving with age. Harvesting earlier gives low-grade wood and poor returns. Harvest permission is granted by the Forest Department after an inspection, so plan for a 15-year horizon.

5. What happens if a sandalwood tree is stolen from my land?

Report it immediately to the local police and the Range Forest Officer, with your plantation records. Theft is a known risk, which is why fencing, security and tree tagging matter. Managed farmland projects usually handle this security for owners.

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