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Perhaps due to the strong demand for Indian Sandalwood and its multitude of end uses, there is a growing shortage as native Sandalwood resources are depleted. India supplies over 90% of the world’s Indian Sandalwood but their supplies are uncertain and ravaged by illegal harvesting and smuggling. Indian Sandalwood is now listed on the World Conservation Union’s (IUCN) Threatened Species Redlist due to this exploitation of the natural resources.  Sources in India suggest that supplies of good quality wood may be depleted in as little as five years.

This supply shortage and strong demand for Sandalwood has created a potent investment incentive.

Since 1991, the price for Indian Sandalwood has been climbing as the supply diminishes. The average increase in price has been 21% per annum, compound, over these 16 years. The latest Indian auction price (December 2007) for cleaned Sandalwood logs was $A107,985 per tonne.