Union Budget 2026: During the Union Budget 2026 announcement, Finance Minister Nirmala Sitharaman highlighted the importance of sandalwood to India’s cultural and social heritage. She announced that the government will take steps to restore and strengthen the Indian sandalwood ecosystem, in partnership with state governments.
The Finance Minister said that the government aims to promote focused cultivation of sandalwood trees across the country. Along with planting, there will be emphasis on improved post-harvesting processes, ensuring better quality and sustainable production. These measures are expected to increase the availability of sandalwood while preserving its natural resources.
“Sandalwood is closely linked to India’s social and cultural heritage. Our government will partner with state governments to promote focused cultivation and post harvesting processes to restore the glory of the Indian Sandalwood ecosystem,” the finance minister said during the 2026 budget announcement.
Sandalwood has long been given importance in India for its use in religious rituals, perfumes, cosmetics, and traditional medicines. However, over the years, the industry has faced challenges such as illegal harvesting, low production, and poor management of sandalwood plantations. The government’s new initiative is aimed at addressing these issues systematically.
Partnership with state governments
The initiative will be implemented through collaboration with state governments, which will play a key role in cultivation, monitoring, and post-harvest management. By involving states directly, the programme aims to create a more organised and profitable supply chain for sandalwood farmers and traders.
This move is expected to benefit not only the economy but also local communities that rely on sandalwood cultivation for their livelihoods. It could generate employment opportunities in planting, harvesting, and processing industries.
Restoring glory of Indian Sandalwood
Finance Minister Sitharaman stressed that sandalwood is more than just a tree. It is a symbol of India’s rich heritage and traditional practices. Through the new government initiatives, India hopes to regain its historical position as a major producer of high-quality sandalwood while promoting sustainability.
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